RELIANCE INDUSTRIES LIMITED
RESULTS FOR Q2 FY 13-14
Q/E SEP 2013
RECORD HALF YEARLY REVENUE
OF Rs.197,112 CR ($31.5BILLION),UP
4.7%
EXPORTS OF Rs.134,455 CR
($21.5BILLION),UP 19.3%
NET PROFIT OF Rs.10,842 CR ($1.7BILLION),UP
9.4%
PBDIT OF Rs.19,519CR ($3.1BILLION),UP
4.9%
RECORD QUARTERLY REVENUE
OF Rs.106,523CR ($17BILLION),UP 14.2%
Highlights of the un-audited financial results (In
Rs.Cr)
Ø Revenue (turnover)increased by 4.7% to Rs.197,112Cr
($ 31.5billion)
Ø Exports increased by 19.3% to Rs.134,455 Cr ($
21.5billion)
Ø PBDIT increased by 4.9% to Rs.19,519 Cr ($
3.1billion)
Ø Profit Before Tax increased by 9.9% to Rs.13,533Cr
($ 2.2billion)
Ø Cash Profit increased by 3.1% to Rs.15,077 Cr ($
2.4billion)
Ø Net Profit increased by 9.4% to Rs.10,842Cr ($
1.7billion)
Ø Gross Refining Margin at $ 8.0/bbl for H/Y ended 30th
Sept 2013
HIGHLIGHTS OF QUARTER’S PERFORMANCE
Ø Revenue (turnover) increased by 14.2% to Rs.106,523Cr
($ 17.0 billion)
Ø Exports increased by 34.9% to Rs.77,429Cr ($
12.4billion)
Ø PBDIT increased to Rs.9,909 Cr ($ 1.6 billion)
Ø Profit Before Tax increased to Rs.6,871Cr ($ 1.1
billion)
Ø Cash Profit decreased by 1.5% to Rs.7,668Cr ($ 1.2
billion)
Ø Net Profit increased by 1.5% to Rs.5,490Cr ($ 0.9
billion)
Ø Gross Refining Margin at $ 7.7/bbl for q/e 30th
September 2013
CORPORATE HIGHLIGHTS
·Reliance and BP announced a new gas condensate
discovery off the east coast of India in Cauvery basin. The discovery, in the
deepwater block CY-DWN-2001/2 (CYD5), is situated 62 kilometers from the coast
in Cauvery Basin and is the second gas discovery in the block. RIL is the
operator with 70% equity and BP has a 30% share. Well CYIII-D5-S1 was drilled
in a water depth of 1,743 meters, to a total depth of 5,731 meters, with the primary
objective of exploring Mesozoic-aged reservoirs.
·In July 2013, Reliance has inked a MOU with ONGC to
explore the possibility of sharing RIL’s infrastructural facility in the East
Coast. In line with global practice of sharing infrastructure, the MoU aims at
working out modalities for sharing of infrastructure, identifying additional
requirements as well as firming up commercial terms.
·RIL and its partners BP and NIKO announced a
significant gas and condensate discovery in the KG-D6 block off the eastern
coast of India. The KG-D6-MJ1 well was drilled in a water depth of 1,024 metres
- and to a total depth of 4,509 metres -to explore the prospectivity of a
Mesozoic Synrift Clastic reservoir lying over 2,000 metres below the already
producing reservoirs in the D1-D3 gas fields. The discovery, named ‘D55’, has
been notified to Government of India and the Management Committee of the block.
This discovery is expected to add to the hydrocarbon resources in the KG-D6
block. Appraisal will now commence to better define the scale and quality of
the field.
·In April
2013, Reliance Jio Infocomm Limited and Bharti Airtel Limited signed an
Indefeasible Right to Use (IRU)Agreement, under which Bharti will provide
Reliance Jio data capacity on its i2i submarine cable. Reliance Jio will
utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance
Jio to extend its network and service reach to customers across Asia Pacific
region.
· In April 2013, Telekom Malaysia Berhad (TM)
(Malaysia), Vodafone Group (UK), Omantel (Oman), Etisalat (UAE), Reliance Jio
Infocomm Limited (India) and Dialog Axiata (Sri Lanka) –signed the Construction
and Maintenance Agreement (C&MA) and Supply Contract for “Bay Of Bengal
Gateway” Cable System (BBG) in Kuala Lumpur. The construction of BBG is planned
not only to provide connectivity between South East Asia, South Asia and the
Middle East, but also to Europe, Africa and to the Far East Asia through
interconnections with other existing and newly built cable systems landing in
India, the Middle East and the Far East Asia.
·Reliance Jio Infocomm Limited and Reliance
Communications Limited signed of a definitive agreement for sharing of RCOM’s
nationwide telecom towers infrastructure. Under the terms of the agreement,
Reliance Jio Infocomm will utilise upto 45,000 ground and rooftop based towers
across RCOM’s nationwide network for accelerated roll-out of its
state-of-the-art 4G services.
The
agreement provides for joint working arrangements to configure the scope of
additional towers to be built at new locations to ensure deep penetration and
seamless delivery of next generation services.
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS
RIL
achieved a turnover of Rs.197,112Cr ($31.5billion)for the half year ended 30th September
2013, an increase of 4.7%,as compared to Rs.188,193 Cr in Q2 FY 12-13. Higher price
accounted for 4.5% growth in revenue while increase in volume accounted for
0.2% growth in revenue.
Exports
were higher by 19.3% on a Y-o-Y basis at Rs.134,455 Cr ($21.5billion)as against Rs.112,667 Cr
in Q2 FY 12-13.Higher crude oil prices Were the main reason for the 3.3%
increase in cost of raw materials from Rs.156,975 Cr to Rs.162,094 Cr($
25.9billion)on Y-o-Y basis.
Employee
costs were at Rs.1,707Cr ($ 273million) as against Rs.1,699 Cr in the
corresponding
period of the previous year.
Other
expenditure increased by 13.6% on a Y-o-Y basis from Rs.11,531 Cr to Rs.13,101Cr
($ 2.1billion) primarily due to higher expenses on account of power & fuel
consumption and higher selling expenseson account of higher exports.
Operating
profit before other income and depreciation increased by 2.3% on a Y-o-Y basis
from Rs.14,588 Cr to Rs.14,924($ 2.4billion) Cr due to higher margins in
refining and petrochemicals business. This was partly offset by lower
production in the oil and as business.
Other income
was higher at Rs.4,595Cr ($ 734million) as against Rs.4,016 Cr in the corresponding
period of the previous year. This was mainly on account of higher investment
income. Depreciation (including depletion and amortization)was lower by 8.3% to
Rs.4,371($698million) Cr as compared to Rs.4,769Cr in Q2 FY 12-13. This was
primarily due to lower production of oil & gas.
Interest
cost was higher at Rs.1,615 Cr ($ 258million) as against Rs.1,521Cr in Q2 FY
12-13 principally due to depreciation of Indian rupee. This resulted in gross interest
cost being higher at Rs.1,944Cr ($310million) as against Rs.1,615Cr in Q2 FY
12-13.
Interest capitalized
was at Rs.329Cr ($ 53million) as against Rs.95Cr in Q2 FY 12-13.
Profit
after tax was higher by 9.4% at Rs.10,842Cr ($ 1.7billion) as against Rs.9,912 Cr
in Q2 FY 12-13.
Basic
earnings per share (EPS)for the half year ended 30th September2013 was
Rs.33.6 ($ 0.5) against Rs.30.5 in Q2 FY 12-13.
Outstanding
debt as on 30th September2013 was Rs.83,982Cr ($13.4billion)
compared to Rs.72,427Cr as on 31st March 2013.
RIL had cash
and cash equivalents of Rs.90,540Cr ($
14.5billion). RIL is debt free on a net basis as at 30thSeptember2013.
The net addition
to fixed assets for the half year ended 30th September 2013 was Rs.20,154
Cr ($ 3.2billion) including exchange rate difference capitalization. Capital
expenditure was principally on account of ongoing expansions projectsin the
petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira.
DOMESTIC
OPERATIONS:- KG-D6Production update:KG-D6 field produced 1.0 million barrels of
crude oil, 0.13million barrels of condensate and 94.6BCF of natural gas in 1H
FY14 , a reduction of 41%, 50% and 52%respectively on a Y-o-Ybasis. Fall in
production is mainly attributed to geological complexity and natural decline in
the fields.
Key
Project update
·Exploration
First appraisal well for MJ-A1 spud in
mid-September 2013
R-Cluster
development
Field
Development Plan approved by MC in August 2013
Front End
Engineering & Design (FEED)completed
D1-D3 and
MA field
Booster
compressor–FEED completed and detailed engineering in progress
Development
well A8 spud in mid-September 2013
Side-track
and water shut-off jobs to follow after drilling and completion of MA8 well
Panna-Mukta
and Tapti (PMT)Production update:
Panna-Mukta
fields produced 3.6 million barrels of crude oil and 33.8 BCF of natural gas in
1H FY14–reduction of 17% in case of crude oil and 6% in case of natural gas on
Y-o-Ybasis. Lower production due to Mukta A shut down in Panna-Mukta field
coupled with natural decline. Tapti produced 0.14 million barrels of condensate
and 14.9 BCF of natural as in 1H FY14–a decline of 53% and 42% respectively on
Y-o-Y basis. The decrease was due to natural decline and under performance of new
ERD wells drilled last year.
Key
project update:·Panna-Mukta
Two rigs are in operation
O
Development wells in Panna L”
area –4 wells completed and put to production. Balance 2 wells to be completed
by3QFY14
O
Infill drilling campaign –3 wells
completed and put to production.Balance 4wells to be ompleted by4Q FY14
The
Fashion and lifestyle business continued to deliver a strong performance in the
quarter with launch of private brands and collections in collaboration with
Indian and nternational designers. Reliance Trends was awarded Images “Most
Admired Retailer of the Year –Large Format Fashion/ Lifestyle” at the India
Retail Forum.
Witnessing
the rapid migration of books and music delivery via digital channels, the
business has decided to discontinue offering books and music through physical
stores being operated under Time Out banner.
In the
quarter, Reliance Brands opened the first stores for Dune and Stuart Weitzman
apart from new store openings for other partner brands.
Towards
the next phase of growth, the Company has identified strategic technology
enabled initiatives, spanning across all formats and functional areas. The
Company has partnered with strategic technology partners to implement
industry-leading solutions in areas such as supply chain management, assortment
planning, etc. Some of these strategic initiatives include Mobile Point of
Sales systems, RFID based automation, Enhanced version of Customer Relationship
Management (CRM), Assortment Planning and Space Optimization, etc.
BROADBAND ACCESS
RIL’s
subsidiary, Reliance Jio Infocomm Limited (“RJIL”), which is the only private
player with Broadband Wireless Access spectrum in all the 22 telecom circles of
India, plans to provide reliable fast internet connectivity and rich digital
services on a Pan India basis.
In
addition to fixed and wireless broadband connectivity, RJIL also plans to
enable end-to-end solutions that address the entire value chain across various
digital services in key domains of national interest such as education,
healthcare, security, financial services, government-citizen interfaces
and entertainment. RJIL aims to comprehensively address the requisite
components of the customer need, thereby fundamentally enhancing the
opportunity and experience of hundreds of millions of Indian citizens and
organizations.
From less
than 700 employees last year, most of them based in RJIL’s Navi Mumbai campus,
the RJIL team has grown rapidly to a national footprint of over 4,000 employees
today. The key leadership positions required to execute the project are in
place. RJIL has finalized the key vendor and supplier partnerships that are
required for the launch of our services, and is making rapid progress in building
the critical infrastructure needed to launch its services.
In the
past year, RJIL has announced key definitive agreements with Reliance
Communications (RCOM) for inter-city optic fibre sharing, for sharing of up to
45,000 of RCOM’s nationwide telecom towers, and for joint working arrangements
to configure the scope of additional towers to be built at new locations. RJIL
also announced a key agreement for international data connectivity with Bharti
to utilise dedicated fiber pair on Bharti’s i2i submarine cable that connects
India and Singapore. In addition, RJIL also signed the Construction and
Maintenance Agreement (C&MA) and the Supply Contract for “Bay Of Bengal
Gateway” Cable System (BBG) in Kuala Lumpur, to provide connectivity between
South East Asia, South Asia and the Middle East, Europe, Africa and to the Far
East Asia.
RJIL has
received LoI from DOT for award of Unified Licence with Authorisation for all
Services under Unified License in all service areas and RJIL has complied with
requirements of LoI including payment of the requisite entry fee. In addition
RJIL has been awarded with a Facility Based Operator License (“FBO License”) in
Singapore which will allow Reliance Jio Infocomm Pte Ltd.to buy, operate and
sell undersea and/or terrestrial fibre connectivity, setup its internet point
of presence, offer internet transit and peering services as well as data and
voice roaming services in
Singapore.
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