Reliance: Under pressure - Views on News from Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

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

Reliance: Under pressure

Jul 31, 2001

Reliance Industries Ltd. (RIL) has reported a dip in sales by 3.4%. Adjusting for merchant exports in the first quarter of the previous fiscal, sales of manufactured products has increased by 4.1%.

(Rs m)1QFY011QFY02Change
Sales 66,150 63,900 -3.4%
Other Income 780 1,270 62.8%
Expenditure 54,580 52,150 -4.5%
Operating Profit (EBDITA) 11,570 11,750 1.6%
Operating Profit Margin (%)17.5%18.4%
Interest 2,980 2,570 -13.8%
Depreciation 3,660 3,960 8.2%
Profit before Tax5,7106,49013.7%
Tax 280 310
Profit after Tax/(Loss) 5,430 6,180 13.8%
Net profit margin (%)8.2%9.7%
No. of Shares (eoy) 1,054 1,054
Diluted Earnings per share*20.623.5
P/E Ratio13.6
*(annualised)

Production of RIL has increased by 7% YoY to 2.8 m metric tonnes (MMT). The company has reported a 6% growth in volume sales, however, realisations have dipped by 2%. The slowdown in the global economy, weak domestic market environment, increase in global capacity expansions and volatiltiy in feedstock prices has led to a challenging operating environment.

The OPM of the company has improved by 90 basis points during the quarter. However, margins have declined QoQ by 230 basis points. Operating expenses for the quarter have declined due to the absence of any merchant exports of RPL in the current quarter.

Depreciation method on certain assets have been changed from straight line method to written down value method. The change has been made with retrospective effect. Interest expenses have declined in the quarter due to repayment of loans and refinancing of high cost debt with low cost debt. The pre-tax profits have been buoyed by higher other income. The company has earned dividend from its subsidiary, RPL.

At Rs 319 the company trades on a multiple of 13.6x 1QFY02 annualised earnings.

Equitymaster requests your view! Post a comment on "Reliance: Under pressure". Click here!

  

More Views on News

What's Driving the Rally in Reliance Shares? (Views On News)

Jun 1, 2021

The recent run up in Reliance Industries shares helps Nifty post new record highs.

RELIANCE IND. Announces Quarterly Results (2QFY21); Net Profit Down 7.1% (Quarterly Result Update)

Nov 4, 2020 | Updated on Nov 4, 2020

For the quarter ended September 2020, RELIANCE IND. has posted a net profit of Rs 105 bn (down 7.1% YoY). Sales on the other hand came in at Rs 1,162 bn (down 23.6% YoY). Read on for a complete analysis of RELIANCE IND.'s quarterly results.

RELIANCE IND. 2019-20 Annual Report Analysis (Annual Result Update)

Aug 5, 2020 | Updated on Aug 5, 2020

Here's an analysis of the annual report of RELIANCE IND. for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of RELIANCE IND.. Also includes updates on the valuation of RELIANCE IND..

RELIANCE IND. Announces Quarterly Results (1QFY21); Net Profit Up 27.8% (Quarterly Result Update)

Jul 31, 2020 | Updated on Jul 31, 2020

For the quarter ended June 2020, RELIANCE IND. has posted a net profit of Rs 129 bn (up 27.8% YoY). Sales on the other hand came in at Rs 912 bn (down 43.5% YoY). Read on for a complete analysis of RELIANCE IND.'s quarterly results.

RELIANCE IND. 2018-19 Annual Report Analysis (Annual Result Update)

Jul 25, 2019 | Updated on Jul 25, 2019

Here's an analysis of the annual report of RELIANCE IND. for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of RELIANCE IND.. Also includes updates on the valuation of RELIANCE IND..

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

RELIANCE IND. SHARE PRICE


Jun 18, 2021 (Close)

TRACK RELIANCE IND.

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

RELIANCE IND. - IOC COMPARISON

COMPARE RELIANCE IND. WITH

MARKET STATS