Saturday, July 20, 2013

Reliance Industries Q1 FY - 2014 Result Analysis

Reliance Industries Q1 Result
Reliance Industries (RIL) has announced first quarter results which were inline with street expectations with slight disappointment on GRM front. Following are the key takeaways from the RIL's Q1 FY - 2014 results.

Net profit in Q1 FY - 2014 is lower than previous quarter (Q4 FY-2013). The refining giant reported Rs 5,589 crore in March 2013 while it posted Rs 5,352 crore in June 2013.

Gross refining margin (GRM) fell Quarter on Quarter at $8.4 per barrel vs. $10.1 per barrel in March 2013.

Profit contribution from its businesses have fallen considerably. Against Rs 5,923 crore in March 2013, the company posted Rs 5,275 crore in earning before interest and tax (EBIT)

Refining profit pull down numbers. Though revenue from refining is higher, its profits are lower, thanks to lower GRM. Sales of Rs 81,458 crore in June 2013 against Rs 77,872 crore in March 2013. EBIT of Rs 2,951 crore against Rs 3,520 crore. 

Gas revenue continues to fall. Gas revenue is down to Rs 1,454 crore in June 2013 against Rs 1,597 crore in March 2013 and Rs 2,508 crore in June 2012. 

Gas profits are at one-third of its previous year. EBIT are at Rs 352 crore in June 2013 against Rs 460 crore in March 2013 and Rs 972 crore in June 2012.  

Other income for June 2013 was at Rs 2,535 crore against Rs 2,243 crore in March 2013 and Rs 1,904 crore in June 2012. Other income now account for one-third of profit before interest and tax. Contribution of other income stands at 33 per cent in June 2013 as against 28 per cent in March 2013 and 30 per cent in June 2012.

Retail and shale gas fastest growing segments. Revenue from Retail improved by 53 per cent (YoY) and Shale gas 84 per cent (YoY). However, their contribution to the turnover is still small to have a meaningful impact.

Cash and Cash Equivalents at Rs 93,000 crore at the end of June quarter.

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