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RIL to be watched after Q1 results

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Last Updated : Jul 22 2013 | 9:10 AM IST

Reliance Industries' (RIL) net profit rose 18.9% to Rs 5352 crore on 4.6% decline in revenue to Rs 90589 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Friday, 19 July 2013.

RIL's operating profit before other income and depreciation rose 3.9% to Rs 7075 crore in Q1 June 2013 over Q1 June 2012. Other income rose 33.14% to Rs 2535 crore in Q1 June 2013 over Q1 June 2012, mainly on account of profit on sale of investments in the fixed income instruments and higher average liquid investments. RIL's revenue from exports rose 3.2% to Rs 57026 crore in Q1 June 2013 over Q1 June 2012.

RIL's gross refining margin (GRM) stood at $8.4 per barrel in Q1 June 2013.

RIL's outstanding debt as on 30 June 2013 was Rs 80307 crore, as against Rs 72427 crore as on 31 March 2013. The company had cash and cash equivalents of Rs 93066 crore as on 30 June 2013. These were in bank deposits, mutual funds, CBLO, CDs and Government securities/bonds. RIL is debt free on a net basis as on 30 June 2013.

The net addition to fixed assets for Q1 June 2013 was Rs 10523 crore including exchange rate difference capitalisation. Capital expenditure (capex) was principally on account of ongoing expansion projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira, RIL said.

Commenting on the company's Q1 results, Mukesh D. Ambani, CMD, RIL said: Reliance achieved strong results during the first quarter of FY 2013-14, while investing in projects that will provide sustainable advantage for a longer period. Our performance this quarter reflects higher operating rates and embedded options in crude sourcing and product placement, given the size and scale of the refining business. Robust growth in petrochemical products demand augurs well for our biggest ever expansion programme. Retail business continues to make remarkable progress and registered a 53% growth in revenues during the first quarter.

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RIL's KG-D6 field produced was 0.5 million barrels of crude oil, 0.06 million barrels of condensate and 49.2 BCF of natural gas in Q1 June 2013, a reduction of 41%, 58% and 53% respectively on a year on year (YoY) basis. RIL attributed the fall in production to geological complexity, natural decline in the fields and higher than envisaged water ingress.

RIL's shale gas business in the United States comprises of three upstream joint ventures (JVs), each with Chevron, Pioneer Natural Resources and Carrizo Oil & Gas and a midstream JV with Pioneer. Aggregate investments since inception of these JVs stood at around $6 billion, as of 30 June 2013, RIL said.

RIL said its retail business continued to grow in Q1 June 2013 despite challenging macroeconomic environment. A mix of strong same store sales growth and new store openings helped increase the turnover by 53% to Rs 3474 crore in Q1 June 2013 over Q1 June 2012, RIL said. The business continued with store expansion across all format sectors and added 45 stores to its portfolio in Q1 June 2013. The business witnessed strong same store sales growth ranging from 10% to 22% across format sectors during the quarter over corresponding period last year, RIL said.

RIL's subsidiary, Reliance Jio Infocomm (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, RIL said.

RIL said it has retained its domestic credit ratings of AAA from CRISIL and FITCH and an investment grade rating for its international debt from Moody's as Baa2. S&P has raised the long term corporate credit rating to BBB+ from BBB.

Asian Paints and L&T will unveil Q1 June 2013 results today, 22 July 2013.

FMCG and agri-sector stocks will be in focus after the latest data showed a further pick-up in sowing of kharif crops. The Centre on Friday, 19 July 2013, said that as per reports received from state governments, the total sown area in the country stands at 620.20 lakh hectare (lh) as on 19 July 2013, compared with 506.21 lh at this time last year.

Wockhardt on Saturday, 20 July 2013 said it has received a warning letter from the United States Food and Administration (USFDA), listing the observations made by it during its earlier inspection of Wockhardt's Waluj facility.

Wockhardt had on 24 May 2013 said that the company received an 'import alert' from USFDA on one of its manufacturing unit located in Waluj near Aurangabad. The company at that time said that the impact of the import alert on the revenues is estimated to be in the range of $100 million on an annualised basis.

Wockhardt said that the company continues to cooperate with USFDA to resolve the issues at the earliest.

Federal Bank's net profit declined 44.49% to Rs 105.66 crore on 12.52% growth in total income to Rs 1869.05 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Friday, 19 July 2013.

Federal Bank's ratio of net non-performing assets (NPAs) to net advances stood at 0.91% as on 30 June 2013, as against 0.98% as on 31 March 2013 and 0.62% as on 30 June 2012. The ratio of gross NPAs to gross advances stood at 3.51% as on 30 June 2013, as against 3.44% as on 31 March 2013 and 3.6% as on 30 June 2012.

Federal Bank's provisions and contingencies jumped 290.41% to Rs 245.10 crore in Q1 June 2013 over Q1 June 2012.

The bank's capital adequacy ratio (CAR) as per Basel II norms stood at 15% as on 30 June 2013, as against 14.73% as on 31 March 2013 and 15.45% as on 30 June 2012. CAR as per Basel III norms stood at 14.27% as on 30 June 2013.

CRISIL's consolidated net profit surged 38.5% to Rs 60.52 crore on 22.8% growth in income from operations to Rs 265.84 crore in Q2 June 2013 over Q2 June 2012. CRISIL said that the growth in ratings revenue in Q1 June 2013 was driven by an increase in bond issuances during the quarter. The company's SME Ratings business reported strong growth, backed by greater acceptance by the banking system and an increasing footprint across the country. CRISIL's Global Analytical Centre (GAC) continued to see good demand from analytical teams of Standard & Poor's, the company said.

On 3 June 2013, McGraw-Hill Financial Inc. (MHFI) through its subsidiary, McGraw-Hill Asian Holdings (Singapore) Pte announced a voluntary open offer to acquire upto 1.56 crore equity shares, representing 22.23% of the total equity shares outstanding in CRISIL. Full acceptance of the voluntary open offer would increase the total stake of MHFI in CRISIL to 75% from 52.77% . The offer price is set at 1,210 per share.

CRISIL's board of directors at a meeting held on Friday, 19 July 2013, declared the payment of interim dividend of Rs 3 per share for the year ending 31 December 2013.

Texmaco Rail and Engineering on Saturday said it has launched an open offer to buy a 30% stake in Kalindee Rail Nirman (Engineers) after buying out entire promoters' stake of 11.74% in the firm. Texmaco Rail has decided to buy 49.52 lakh shares of Kalindee Rail through open offer at an offer price of Rs 68 a share. Texmaco Rail currently owns 36.64% stake in Kalindee Rail.

HT Media reported 16.8% rise in consolidated net profit to Rs 47.49 crore on 10.1% rise in net sales to Rs 532.23 crore in Q1 June 2013 over Q1 June 2012.

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First Published: Jul 22 2013 | 8:46 AM IST

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