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RIL gains after strong Q1 earnings

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Capital Market
Last Updated : Jul 21 2014 | 11:58 PM IST

Reliance Industries rose 2.26% to Rs 998.80 at 9:17 IST on BSE after consolidated net profit rose 13.7% to Rs 5957 crore on 7.2% growth in revenue to Rs 107905 crore in Q1 June 2014 over Q1 June 2013.

The Q1 result was announced on Saturday, 19 July 2014.

Meanwhile, the S&P BSE Sensex was up 167.96 points or 0.66% at 25,809.52.

On BSE, so far 61,000 shares were traded in the counter as against average daily volume of 4.28 lakh shares in the past one quarter.

The stock hit a high of Rs 1,004 and a low of Rs 996.95 so far during the day. The stock had hit a 52-week high of Rs 1,142.50 on 16 May 2014. The stock had hit a 52-week low of Rs 765 on 28 August 2013.

The stock had underperformed the market over the past one month till 18 July 2014, sliding 8.45% compared with Sensex's 1.57% rise. The scrip had also underperformed the market in past one quarter, advancing 1.87% as against Sensex's 13.31% rise.

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The large-cap company has equity capital of Rs 3233.68 crore. Face value per share is Rs 10.

Reliance Industries (RIL) attributed the increase in top line during the quarter to higher prices.

Operating profit before other income and depreciation rose 14.4% to Rs 8989 crore in Q1 June 2014 over Q1 June 2013, due to higher contribution from refinery, petrochemicals and oil and gas business, RIL said in a statement.

RIL's other income declined 17.47% to Rs 1974 crore in Q1 June 2014 over Q1 June 2013.

RIL's gross refining margin (GRM) improved to $8.7 per barrel in Q1 June 2014 from $8.4 per barrel in Q1 June 2013 but decreased from $9.3 per barrel in Q4 March 2014.

Commenting on the company's Q1 results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said, "RIL has delivered a record level of consolidated net profit, this quarter. This was achieved despite weak regional refining margins and a planned turnaround in our refinery. The petrochemicals business performance highlights the strength of our portfolio-mix and endmarket diversity. Alongside, this robust financial performance, we also made significant progress on our growth commitments. We have a great pipeline of new projects which will give Reliance an enduring competitive advantage. We are further expanding our retail business in existing markets while exploring newer markets and channels. At Reliance, social responsibility and care for the environment is an integral part of our economic success."

RIL's outstanding debt as on 30 June 2014 was at Rs 135769 crore as against Rs 138761 crore as on 31 March 2014. The company had cash and cash equivalents of Rs 81559 crore. These were in bank deposits, mutual funds, CDs and Government securities/bonds, RIL said in a statement.

RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.

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First Published: Jul 21 2014 | 9:16 AM IST

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