Wednesday, October 15, 2014
RELIANCE INDUSTRIES LTD - SECOND QUARTER RESULTS - SEPTEMBER,2014 - NPT up 1.7% - Future looks promising
RELIANCE INDUSTRIES LTD
SECOND QUARTER RESULTS
RECORD HALF YEARLY CONSOLIDATED REVENUE OF Rs.221,301 CR ($35.8 BILLION), UP 1.0%
HALF YEARLY CONSOLIDATED PBDIT OF Rs.22,895 CR ($3.7 BILLION), UP 6.4%
HALF YEARLY CONSOLIDATED SEGMENT EBIT OF Rs.14,310 CR ($2.3 BILLION), UP 17.8%
RECORD HALF YEARLY CONSOLIDATED NET PROFIT OF Rs.11,929 CR ($1.9 BILLION), UP 7.4%
RECORD QUARTERLY CONSOLIDATED NET PROFIT OF Rs.5,972 CR ($967 MILLION), UP 1.7%
HIGHLIGHTS OF QUARTER’S PERFORMANCE
Ø Revenue (turnover) decreased by 4.3 % to Rs.113,396 Cr ($ 18.4 billion)
Ø PBDIT increased by 5.6 % to Rs.11,879 Cr ($ 1.9 billion)
Ø Profit before Tax increased by 4.9 % to Rs.7,858 Cr ($ 1.3 billion)
Ø Cash Profit increased by 4.9 % to Rs.9,250 Cr ($ 1.5 billion)
Ø Net Profit increased by 1.7 % to Rs.5,972 Cr ($ 967 million)
FOR THE QUARTER (2Q FY15)
Ø In August 2014, Reliance Haryana SEZ Ltd (RHSL) has returned 1383.68 acres of land in Gurgaon acquired from HSIIDC for setting up SEZs due to revision of strategic priorities. RHSL is a joint venture between Reliance Ventures Ltd (RVL), RIL’s wholly-owned subsidiary, and Government of Haryana through HSIIDC. The JV was established for development of SEZs / Model Economic Township (MET) project and other infrastructure facilities in Haryana. HSIIDC has also exited the JV and the project.
Ø In May 2014, The Board of RIL approved funding of up to Rs.4,000 Cr to Independent Media Trust (“IMT”), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments Ltd (“NW18”) including its subsidiary TV18 Broadcast Ltd (“TV18”). In July 2014, RIL has completed the acquisition of control of Network 18 Media and Investments Ltd (“NW18”) including its subsidiary TV18 Broadcast Ltd (“TV18”).
Ø In September 2014, Reliance Jio Infocomm Ltd (“RJIL”), a subsidiary of RIL has signed a US$ 750 Million loan backed by Korea Exim Bank on 24 September 2014. The loan is guaranteed by RIL and will be primarily used to finance goods and services procured from Samsung Electronics for the infrastructure rollout of RJIL.
Ø In September 2014, RJIL, a subsidiary of RIL, and GTL Infrastructure Ltd (“GTL Infra”), a Global Group enterprise, announced signing of a Master Services Agreement (MSA) for tower infrastructure sharing. In addition, in September 2014, RJIL and Indus Towers, the world’s largest and India’s leading provider of telecom tower infrastructure, announced the signing of a Master Services Agreement (MSA) for tower infrastructure sharing. Under the agreement, Reliance Jio would utilize the telecom tower infrastructure services being provided by Indus Towers to launch its services across the country.
REVIEW AND ANALYSIS
RIL achieved a turnover of Rs.113,396 Cr ($ 18.4 billion) for the quarter ended 30th September 2014, decrease of 4.3 %, as compared to Rs.118,439 Cr in the Q2 FY 14. Lower crude prices and volumes mainly in the refining and oil & gas business accounted for decrease in revenue. Exports from India were lower by 14.7% at Rs.66,065 Cr ($ 10.7 billion) as against Rs.77,428 Cr in the Q2 FY 14.
Cost of raw materials was lower by 12.9% from Rs.93,933 Cr to Rs. 81,815 Cr ($ 13.2 billion) on Y-o-Y.
Employee costs were at Rs.1,575 Cr ($ 255 million) as against Rs.1,409 Cr in Q2 FY 14.
Other expenditure increased by 19.8% on a Y-o-Y basis from Rs.8,063 Cr to Rs.9,660 Cr ($ 1.6 billion) .
The increase of power and fuel is on account of lower usage of internal fuels which were utilized for value optimization.
Operating profit before other income and depreciation increased by 10.8 % on a Y-o-Y basis from Rs.8,865 Cr to Rs.9,818 Cr ($ 1.6 billion) due to higher contribution from refinery, petrochemicals and oil and gas business.
Other income was lower at Rs.2,009 Cr ($ 325 million) as against Rs.2,346 Cr in Q2 FY 14, primarily on account of lower investible surplus.
Depreciation (including depletion and amortization) was higher by 8.2% to Rs.3,024 Cr ($ 490 million) as compared to Rs.2,796 Cr in Q2 FY 14.
Interest cost was at Rs.997 Cr ($ 161 million) as against Rs.959 Cr in Q2 FY 14.
Profit after tax was higher by 1.7% at Rs.5,972 Cr ($ 967 million) as against Rs.5,873 Cr in the Q2 FY 14.
Basic earnings per share (EPS) for the quarter was Rs.20.3 as against Rs.20.0 in the Q2 FY 14.
Outstanding debt as on 30th September 2014 was Rs.142,084 Cr ($ 23.0 billion) compared to Rs.138,761 Cr as on 31 st March 2014.
Cash and cash equivalents as on 30th September 2014 were at Rs.83,456 Cr ($ 13.5 billion).
The net addition to fixed assets for the half year ended 30th September 2014 was Rs.44,895 Cr ($ 7.3 billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US Shale gas projects.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Ltd said: “RIL’s financial performance for the period stands testimony to the intrinsic strength of our integrated business operations. The refining and petrochemical businesses, once again, delivered robust results, outperforming regional industry benchmarks. Renewed optimism in the domestic economy augurs well for business and consumer confidence particularly against the backdrop of continuing concerns on global economic growth. We expect to create significant value for our stakeholders over the next 12-18 months as we complete our large investment programme across energy and consumer businesses. These projects will propel the next phase of growth for India and Reliance.”
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