Reliance Petroleum: Chugging along… - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Reliance Petroleum: Chugging along…

Jan 31, 2001

Reliance Petroleum Ltd. (RPL) has declared its 3QFY01 results. However, being the first year of operations YoY comparisons are not possible. Strong execution skills have not only enabled the company to commence operations as per the scheduled date it has also led to the company achieving rated capacity utilisation in the first year of operations.

(Rs m) 2QFY01 3QFY01 Change 9m FY01
Sales 83,250 91,490 9.9% 234,570
Other Income 700 710 1.4% 1,540
Expenditure 75,470 83,360 10.5% 212,480
Operating Profit (EBDIT) 7,780 8,130 4.5% 22,090
Operating Profit Margin (%) 9.3% 8.9%   9.4%
Interest 2,840 2,710 -4.6% 7,270
Depreciation 1,620 1,720 6.2% 4,690
Profit before Tax 4,020 4,410 9.7% 11,670
Tax - -   -
Profit after Tax/(Loss) 4,020 4,410 9.7% 11,670
Net profit margin (%) 4.8% 4.8%   5.0%
No. of Shares (eoy) 4,300 4,300   4,300
Earnings per share* 3.7 4.1   3.4
P/E Ratio 15.0 15.5   18.7

The high complexity of the refinery has enabled the company to produce a superior product mix. Consequently, the company has been able to penetrate the quality stringent Western markets. Exports of RPL were Rs 47.1 bn for the 9 month period ended December '00. The company processed 7.2 MMT of crude this quarter.

With the continuing difficulty faced by the sector as oil prices remained firm (touching their 10-year highs) the OPM of the company declined by 40 basis points. Excess capacity in certain (petrol and diesel) fuels led to the company targeting the export markets. However, lower realisations in these markets could have also impacted the margins.

The RPL stock is trading at Rs 63.6 on a multiple of 15.5x 3QFY01 annualised earnings. RPL 's P/E is significantly higher than its peer group, which is trading on an average multiple of 5x.

Equitymaster requests your view! Post a comment on " Reliance Petroleum: Chugging along… ". Click here!


More Views on News

5 Green Energy Stocks to Watch as India Readies for a Revolution (Views On News)

Oct 13, 2021

The excitement around green energy stocks has opened up a huge contrarian opportunity in the traditional energy space.

Top Performing PSU Stocks over the Past One Year (Views On News)

Oct 1, 2021

After a decade of underperformance, PSU stocks have woken up. Here are the best performing PSUs of past twelve months.

Linde India Shares Hits New High. Up 230%+ in One Year (Views On News)

Aug 26, 2021

Linde India shares have surged sharply in the past few trading sessions. What's causing the rally?

ONGC Logs Massive Jump in Net Profit as Crude Oil Prices Double (Views On News)

Aug 16, 2021

Rising crude oil prices compensate ONGC's fall in production.

HPCL Shares Under Pressure After Profit Declines in June Quarter (Views On News)

Aug 5, 2021

Rising crude oil prices and forex woes weigh on HPCL's quarterly numbers.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

The Biggest Winners and Losers in India's Transition to Electric Vehicles (Profit Hunter)

Nov 26, 2021

How India's EV transition could be a major headwind for the incumbents.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


  • Track your investment in REL PETRO with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks