Apr 30, 2001|
Reliance Petro: Maiden year performance
Reliance Petroleum Ltd. (RPL) has declared its maiden annual results. Therefore, YoY comparisons are not possible. Strong execution skills have enabled the company to achieve rated capacity utilisation in the first year of operations. The turnover has weakened compared to the previous two quarters. This could be due to the plant shutdowns post Gujarat earthquake.
| (Rs m)
| Other Income
| Operating Profit (EBDIT)
|Operating Profit Margin (%)
| Profit before Tax
| Extraordinary items
| Profit after Tax/(Loss)
|Net profit margin (%)
| No. of Shares (eoy)
| Earnings per share*
| P/E Ratio
The high complexity of the refinery could have enabled the company to produce a superior product mix. Consequently, the company has been able to penetrate the quality stringent Western markets with diesel exports. The operating margins of the company (10.1%) are significantly higher than its PSU peers, which have margins in the 3%-4% range. Oil prices have cooled down in the last quarter of FY01 by 23% from their high in 3QFY01. Consequently, QoQ the OPM has increased by 240 basis points.
The extraordinary items refers to the revenue loss, start up costs and higher working capital costs consequent to the earthquake in Gujarat. The company has filed for an insurance claim for the same amount. Further adjustments will be made in the year the claim is settled.
The RPL stock is trading at Rs 51 on a multiple of 20.3x 4QFY01 annualised earnings. RPL 's P/E is significantly higher than its peer group, which is trading on an average multiple of 5x. On full year earnings the company trades on a multiple of 16.5x.
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