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Posted on Jan 18, 08:05PM | IBNS
Reliance Industries Limited (RIL), India's largest private sector enterprise, on Friday reported its financial performance for the quarter / nine months ended 31st December, 2012.
Highlights of the un-audited financial results as compared to the corresponding period of the previous year are:
HIGHLIGHTS OF NINE MONTH'S PERFORMANCE
and #61623; Revenue (turnover) increased by 12.9pc to ` 284,500 crore (USD 51.7 billion)
and #61623; Exports increased by 14.6pc to ` 179,581 crore (USD 32.7 billion)
and #61623; PBDIT at ` 28,717 crore (USD 5.2 billion)
and #61623; Profit Before Tax at ` 19,164 crore (USD 3.5 billion)
and #61623; Cash Profit at ` 22,561 crore (USD 4.1 billion)
and #61623; Net Profit at ` 15,414 crore (USD 2.8 billion)
and #61623; Gross Refining Margin at USD 9.0 /bbl for the nine month ended 31st December 2012
HIGHLIGHTS OF QUARTER'S PERFORMANCE- 3Q FY13 V 2Q FY13
and #61623; Revenue (turnover) increased by 3.3pc to ` 96,307 crore (USD 17.5 billion)
and #61623; Exports increased by 16.6pc to ` 66,915 crore (USD 12.2 billion)
and #61623; PBDIT increased by 2.3pc to ` 10,113 crore (USD 1.8 billion)
and #61623; Profit Before Tax increased by 0.1pc to ` 6,850 crore (USD 1.2 billion)
and #61623; Cash Profit increased by 2.0pc to ` 7,938 crore (USD 1.4 billion)
and #61623; Net Profit increased by 1.7pc to ` 5,502 crore (USD 1.0 billion)
and #61623; Gross Refining Margin at USD 9.6/bbl
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "RIL's performance has improved in this quarter with margin expansion in petrochemicals and record earnings in the refining business."
"We are investing over Rs 100,000 crore by expanding our petrochemical capacities and adding value to our refining business. These investments will secure a significant change in RIL's earning capacity on commissioning of these projects.
"It will also provide employment opportunity for thousands of young Indians and support India's economic growth," he said.
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS
For the nine months ended 31st December 2012, RIL achieved a turnover of `284,500 crore (USD 51.7 billion), an increase of 12.9pc on a year-on-year (Y-o-Y) basis. Higher prices accounted for 13.7pc growth in revenue which was partly offset by the decrease in production volumes by 0.8pc .
Exports were higher by 14.6pc at ` 179,581 crore (USD 32.7 billion) as against ` 156,753 crore in 9M FY12.
Higher crude oil prices resulted in consumption of raw materials increasing by 15.7pc to ` 235,145 crore (USD 42.8 billion) on a Y-o-Y basis.
Employee costs were at ` 2,562 crore (USD 466 million) for the nine month ended 31st December 2012 as against ` 2,265 crore.
Other expenditure increased by 31.1pc from ` 13,106 crore to ` 17,178 crore (USD 3.1 billion) due to higher power and fuel expenses (imported LNG), higher selling expenses (higher exports) and higher chemicals and stores consumption.
Operating profit before other income and depreciation decreased by 15.1pc from ` 27,055 crore to `22,962 crore (USD 4.2 billion) due to reduction in oil and gas and petrochemicals profits, partially offset by higher operating profit from refining. Net operating margin was lower at 8.1pc as compared to 10.7pc on a Y-o-Y basis due to the base effect.
Other income was higher at ` 5,755 crore (USD 1.0 billion) as against ` 3,897 crore primarily due to higher liquid investments.
Depreciation (including depletion and amortization) was lower by 17.3pc at ` 7,226 crore (USD 1.3 billion) against ` 8,734 crore in 9M FY12 due to lower production of oil and gas.
Interest cost was higher at ` 2,327 crore (USD 423 million) as against ` 1,899 crore in 9M FY12 principally due to higher foreign borrowings and depreciation of the Indian rupee.
This resulted in gross interest cost being higher at ` 2,492 crore (USD 453 million) as against ` 2,286 crore in 9M FY12. Interest capitalized was lower at ` 165 crore (USD 30 million) as against ` 387 crore.
Profit after tax was ` 15,414 crore (USD 2.8 billion) as against ` 15,804 crore on a Y-o-Y basis.
Basic earnings per share (EPS) for the nine month ended 31st December 2012 was ` 47.5 (USD 0.86) against ` 48.3 for the corresponding period of the previous year.
Outstanding debt as on 31st December 2012 was ` 72,266 crore (USD 13.1 billion) compared to `68,259 crore as on 31st March 2012.
RIL had cash and cash equivalents of ` 80,962 crore (USD 14.7 billion). These were in bank deposits and CDs, mutual funds and Government securities / bonds. RIL is debt free on a net basis as at 31st December 2012.
The net capital expenditure towards projects for the nine months ended 31st December 2012 was `13,396 crore (USD 2.4 billion). However, cash outflow on account of capital expenditure for the nine months amounted to ` 7,423 crore (USD 1.3 billion).
Capital expenditure was principally on account of expansions in the petrochemicals business.
During the nine months, RIL has bought and extinguished 4,25,62,849 equity shares for a sum of `3,085 crore. During the quarter ending December 2012, RIL bought back 71,76,233 equity shares for a sum of ` 565 crore.
RIL retained its domestic credit ratings of AAA from CRISIL and FITCH and an investment grade rating for its international debt from Moody's and S and P as Baa2 and BBB respectively.