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RIL in spotlight after Q4 results

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Last Updated : Apr 21 2014 | 11:56 PM IST

Reliance Industries (RIL) on Friday, 18 April 2014, said its net profit rose 0.8% to Rs 5631 crore on 12.9% growth in turnover to Rs 97807 crore in Q4 March 2014 over Q4 March 2013. RIL's non-operational income dropped 9.22% to Rs 2036 crore in Q4 March 2014 over Q4 March 2013.

RIL's net profit rose 2.2% to Rs 5631 crore on 8.1% decline in turnover to Rs 97807 crore in Q4 March 2014 over Q3 December 2013. RIL's non-operational income dropped 11.67% to Rs 2036 crore in Q4 March 2014 over Q3 December 2013.

RIL's gross refining margin (GRM) dropped to $9.3 a barrel in Q4 March 2014, from $10.1 a barrel in Q4 March 2013. The GRM, however, rose on sequential basis from $7.6 a barrel in Q3 December 2013.

RIL's net profit rose 4.7% to a record Rs 21984 crore on 8.1% growth in turnover to a record Rs 401302 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Non-operational income rose 11.72% to Rs 8936 crore in FY 2014 over FY 2013. RIL said that the increase in non-operational income in FY 2014 was mainly on account of higher liquid investments.

The company's outstanding debt as on 31 March 2014 was Rs 89968 crore, higher than Rs 72427 crore as on 31 March 2013. RIL had cash and cash equivalents of Rs 88190 crore as on 31 March 2014. These were in bank deposits, mutual funds, CDs and Government securities/bonds.

The net addition to fixed assets for the year ended 31 March 2014 was Rs 35210 crore including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira, RIL said in a statement.

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RIL's consolidated net profit rose 7.7% to Rs 22493 crore on 9.3% growth in revenue to Rs 446339 crore in FY 2014 over FY 2013.

Commenting on the company's financial performance, Mukesh D. Ambani, Chairman and Managing Director, RIL said: "FY 2013-14 was a satisfying year for RIL. Refining business delivered the highest ever profits with a sharp recovery in GRMs towards the end of the year. Petrochemical earnings grew sharply with margin expansion across polymers and downstream polyester products. While we continue to face technical challenges in growing domestic upstream production, the US shale gas business grew significantly during the year and has become a material contributor to our earnings. Retail business has turned around and is now India's largest retail chain. We have also accelerated efforts to roll-out our state-of-the-art 4G services across the country which will add an exciting new dimension to our consumer facing service offerings".

In a separate announcement, RIL said that its synthetic rubber business group, Relflex Elastomers, inaugurated a elastomers customer support center (ECSC) at its petrochemicals complex in Vadodara. This initiative is in line with RIL's endeavor to become not only a significant synthetic rubber supplier but also to provide intangible technical support to its customers and play a catalytic role in helping them grow their business, increase value additions and reduce import dependence, RIL said in a statement.

Relflex ECSC would serve as a springboard for mutual collaborative efforts, value additions and joint product development between Relflex Elastomers and its customers. The facility will service tyre as well non tyre industry. Reliance Elastomer supplies polybutadiene rubber (PBR) to the tyre industry and enjoys excellent relationship with Indian tyre manufacturers across all segments, the company said.

Wipro's consolidated net profit from continuing operations surged 41% to Rs 2230 crore on 22% growth in revenue from continuing operations to Rs 11700 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 17 April 2014. The results are as per International Financial Reporting Standards (IFRS).

Non-GAAP adjusted net profit from continuing operations rose 42% to Rs 2230 crore in Q4 March 2014 over Q4 March 2013.

IT Services revenue in rupee terms rose 24% to Rs 10620 crore in Q4 March 2014 over Q4 March 2013. IT Services earnings before interest and tax (EBIT) rose 51% to Rs 2610 crore in Q4 March 2014 over Q4 March 2013. IT Services operating margins improved 150 basis points (bps) sequentially to 24.5% in Q4 March 2014.

Wipro's consolidated net profit from continuing operations rose 27% to Rs 7800 crore on 16% growth in revenue from continuing operations to Rs 43760 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

Non-GAAP adjusted net profit from continuing operations rose 28% to Rs 7800 crore in FY 2014 over FY 2013.

IT Services revenue in rupee terms rose 18% to Rs 39950 crore in FY 2014 over FY 2013. IT Services EBIT rose 29% to Rs 9030 crore in FY 2014 over FY 2013. IT Services operating margins expanded 195 bps to 22.6% in FY 2014.

Commenting on the company's financial performance, Azim Premji, Chairman of Wipro said, The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets.

T K Kurien, Executive Director & Chief Executive Officer of Wipro said, Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction.

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro said, We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT Services operating margins by 195 basis points.

Wipro has given a forecast of between 0.3% decline to a growth of 2.02% in revenue from IT Services business at between $1.715 billion to $1.755 billion in Q1 June 2014 over Q4 March 2014.

Wipro's board of directors at its meeting held on Thursday, 17 April 2014, declared final dividend of Rs 5 per share for FY 2014.

Hindustan Zinc and LIC Housing Finance, among others, will announce their January-March 2014 earnings today, 21 April 2014.

Infosys announced that on 15 April 2014, its board appointed Mr. Parvatheesam Kanchinadam, an executive officer of the company, as the Chief Compliance Officer. In this role, Mr. Kanchinadam also acts as the ombudsman to the whistleblower policy. This is following the resignation of Mr. Nithyanandan Radhakrishnan, as the Chief Compliance Officer.

Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions firm announced that it has signed definitive agreements with Mitsubishi Corporation (MC), one of Japan's largest integrated business enterprises to merge TCS Japan, ITF and NTSC. TCS will hold 51% in the merged entity, MC to hold 49%. The merged entities to be operational from July 2014.

Commenting on the transaction N Chandrasekaran, CEO and Managing Director, TCS, said, "This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market. He added: "We deeply value the partnership with Mitsubishi Corporation and look forward to leveraging our mutual strengths in the Japan market."

The transaction will create a new IT Services company of significant scale in the Japanese market. ITF brings its long standing relationships with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading. This will complement TCS' deep domain knowledge, technology expertise and strong execution track record. TCS' Global Network Delivery Model (GNDM) capabilities will also enable the Japanese corporations' globalization ambitions. The company will provide tremendous additional value to clients in Japan; while employees will secure the advantages of building their careers in a global organization, TCS said in a statement.

Bajaj Auto said it received a notice dated 14 April 2014 from Vishwa Kalyan Kamgar Sanghatana, the workmen's union of its Chakan plant, stating that they propose to call for a stoppage of work by all the workmen employed in the plant from the morning shift of 28 April 2014 as per notice. The Notice mentions that the stoppage is not a strike.

Glenmark Pharmaceuticals is reportedly recalling some 2,900 bottles of its stomach ulcer drug ranitidine in the United States after a foreign tablet was found in one of the bottles.

The lot being recalled was manufactured for Glenmark by Shasun Pharmaceuticals, and the foreign tablet was identified to be metoprolol tartrate, a drug to treat high blood pressure. The recall began on March 18.

"Corrective actions have been implemented and the recall is limited to only one lot of material, and financially, the impact of the recall is very insignificant," a Glenmark representative reportedly said in a statement.

Punj Lloyd on Friday, 18 April 2014 said that the company is a diversified international conglomerate offering Engineering, Procurement and Construction (EPC) services in the Energy and Infrastructure sector along with engineering and manufacturing capabilities in the Defence Sector. The Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India has announced the new Consolidated FDI Policy on Thursday, 17 April 2014, effective from the same day, wherein it has stated that investment by FPI/FII (through portfolio investment) in the Defence Sector is not permitted.

The said Policy under Para 6.2.6.1 requires FPI (Foreign Portfolio Investor)/FII (through portfolio investment) in companies holding defence licence as on 22 August 2013 (date of issue of Press Note 6 of 2013) to remain capped at the level existing as on the said date. No fresh FPI/FII (through portfolio investment) is permitted even if the level of such investment falls below the capped level subsequently.

Punj Lloyd was issued a License on 11 September 2007 to manufacture defence items. Accordingly in our view the provisions of Para 6.2.6.1 of the new FDI Policy apply to the company.

OnMobile Global on Friday, 18 April 2014 said it has settled a litigation with Synchronoss Technologies Inc., a company headquartered in New Jersey and a leading player in synchronization technology products. Synchronoss had filed a suit against OnMobile Global and two of its group entities, OnMobile USA LLC & Voxmobili S A, France, alleging infringement of patents by some synchronization products of Voxmobili SA and the matter was before the District Court of New Jersey. As per the terms of such settlement, Synchronoss has, inter alia, completely released OnMobile Global and its aforesaid subsidiaries (together, OnMobile), from all claims fully, without any admission of misconduct by either party, and a joint motion has been filed with the Court seeking dismissal of such litigation, OnMobile Global said. Synchronoss has received $3,000,000 as consideration from OnMobile pursuant to such settlement. OnMobile may have to pay to Synchronoss, an additional amount of $3,000,000, subject however to contingencies and conditions attached thereto, the occurrence of which cannot be estimated with reasonable certainty at this stage, the company said. OnMobile Global believes that the closure of this litigation without any subsisting claims is in the best interests of the company, given that such settlement would bring finality to the dispute and save further litigation costs, the company said.

JK Tyre & Industries said on Saturday, 19 April 2014, that with reference to the earlier letter dated 17 December 2013, the company has allotted 43.03 lakh warrants to the Promoter Group of the company after getting the requisite approvals and received a sum of Rs 12.37 crore from the allottees i.e. 25% of the total consideration in terms of the issue and in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, and the proceeds of the issue have been used towards objects of the same.

Rainbow Papers after market hours on Thursday, 17 April 2014 said its board of directors at a meeting held on 17 April 2014, allotted 2.63 lakh equity shares of face value of Rs 2 per share to one of the promoter group company viz. Drupa Suppliers, pursuant to the conversion of 2.63 lakh warrants out of 90 lakh warrants allotted to the said company on 20 December 2012 on preferential basis under Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009. After the aforesaid conversion, 69.84 lakh warrants are pending for conversion, the company said.

It may be recalled that Rainbow Papers' board of directors had on 20 December 2012, allotted 90 lakh warrants convertible into 90 lakh equity shares of Rs 2 each (in one or more trenches within a maximum period of 18 months), at Rs 81 each to the promoter group company Drupa Suppliers.

Swadeshi Industries & Leasing said that its board will meet on 24 April 2014, to consider a stock split.

Alkyl Amines Chemicals said that it has closed its subsidiary, ALKYL AMINES EUROPE SPRL, at Belgium. In 2009, the company had established a wholly-owned subsidiary, ALKYL AMINES EUROPE SPRL, with a paid-up capital of Euro 12400. Since the subsidiary became dormant, it was closed as of 31 March 2014. Alkyl Amines Chemicals added that its business will not get affected by shutting down of the subsidiary.

Liberty Shoes' net profit surged 340.21% to Rs 4.27 crore on 34.51% increase in total income from operations (net) to Rs 142.41 crore in Q4 March 2014 over Q4 March 2013.

Jyoti Structures said that consequent to reorganization, effective 1 April 2014, Mr. Prakash Thakur is designated as full time Managing Director of Jyoti Structures FZE, a wholly-owned subsidiary company and Vice Chairman of Jyoti Structures.

3M India said that its board appointed Mr. Sameer Agarwal as new Chief Financial Officer (CFO) of the company with effect from 1 April 2014 in place of Mr. Zinan Wadood, who has been relocated to Singapore for a compliance role within 3M Group.

Goa Carbon said that the operations at its Paradeep Plant located at Vill. Udayabata, Paradeepgarh, Dist. Jagatsinghpur, Orissa has been temporarily shut down for maintenance.

Mindtree turns ex-dividend today, 21 April 2014, for third interim dividend of Rs 5 per share for the financial year ended 31 March 2014.

Oil India (OIL) on Friday, 18 April 2014 said that OIL has entered into an agreement with PetroNeft Resources Plc, a Company Registered in Ireland, in respect of 50% non-operating interest in License 61, Tomsk Oblast, Russian Federation with a total investment of up to $85 million.

Shasun Pharmaceuticals after market hours on Thursday, 17 April 2014 said that its board of directors will meet on Wednesday, 23 April 2014, inter alia, for considering issue of convertible warrants/equity shares on preferential basis to promoters and others subject to the approval of the shareholders.

ALSTOM India on Friday, 18 April 2014 said it has been awarded a contract by Bharat Heavy Electricals (BHEL) worth close to euro 30 million to supply components and services for the 2x660 megawatts (MW) Banharpalli Super Thermal Power Project (STPP) located in Jharsaguda, Orissa. The market was closed on Friday, 18 April 2014, on account of Good Friday.

Under the scope of the contract, Alstom will co-operate with BHEL in designing the boilers and supply identified pressure parts of the 660 MW supercritical boilers, along with windboxes. It will also assist BHEL with technical advisors during the erection and commissioning of the units. Key components will be manufactured in Alstom's manufacturing facilities in Concordia (USA), as well as in Durgapur (India). The units I & II are expected to be commissioned by 2018, ALSTOM India said in a statement.

Commenting on this contract, Patrick Ledermann, Vice President of Alstom Thermal Power & Renewable Power in India, said, We are pleased to win this contract for which we will provide our leading supercritical power plant solutions. Alstom's supercritical boilers satisfy the most stringent environmental requirements and stand out for their robustness and high reliability. It also helps in achieving about 3-4% higher plant efficiency compared to conventional subcritical design.

Edelweiss Financial Services said after market hours on Thursday, 17 April 2014 that a meeting of the board of directors of the company will be held on 23 April 2014, to consider the buy-back of equity shares of the company.

KPIT Technologies after having sought information by the exchanges with respect to the spurt in volumes of the company's securities has clarified after market hours on Thursday, 17 April 2014, that there is no price sensitive information, whatsoever, available with the company which needs to be informed to the stock exchanges. The company said that yesterday, a media channel, carried a news item stating that KPIT is going to be acquired by some other company. Possibly, the spurt in volumes is on account of that news. There is absolutely no substance to this news, company added.

This is the third or the fourth time that this channel has carried such a news relating to us. Last time when they carried this news, the company spoke to the news channel about this irresponsible reporting and the channel apologized to the company for carrying this news. The company is really surprised that the channel did the mischief again yesterday, it added. The company also said it is examining legal options for a suitable action against this channel. The company said it would like to know from the exchanges whether, in such circumstances, the exchange can also proceed against the channel for such malicious and fictitious news propagation.

Oberoi Realty said on Friday, 18 April 2014 that credit rating agency, Credit Analysis & Research (CARE) has assigned 'CARE A1+' ratings for instruments with a maturity not exceeding one year upto Rs 100 crore of Oberoi Realty. Instruments with this rating are considered to have very strong degree of safety regarding timely payment of financial obligations. Such instruments carry lowest credit risk.

CARE has also assigned 'CARE AA+ (SO)' ratings for long-term instruments upto Rs 750 crore of Incline Realty, a wholly owned subsidiary of Oberoi Realty. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

Gujarat Pipavav Port after market hours on Thursday, 17 April 2014 said that its board of directors at a meeting held on 17 April 2014, approved the revised expansion plan for enhancement of Container handling capacity from approximately 0.85 million TEUs to approximately 1.35 million TEUs at an estimated cost of about Rs 460 crore. The Dry Bulk and Liquid cargo capacity shall continue to be at approximately 4.5 million tons and approximately 2 million tons respectively, the company said in a statement.

Kamat Hotels (India) after market hours on Thursday, 17 April 2014 said that its board of directors at a meeting held on 15 April 2014, decided to delist the equity shares of the company from MCX stock exchange. The equity shares of the company would continue to remain listed on Bombay Stock Exchange and National Stock Exchange of India, the company said.

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First Published: Apr 21 2014 | 8:47 AM IST

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