X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
RPL: The heat is on - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Oct 30, 2001

    RPL: The heat is on

    The sluggishness in the Indian economy leading to a marked slowdown in refinery throughput seems to be reflected in the topline growth of Reliance Petroleum Ltd. (RPL). Despite the adverse industry conditions the company has been able to sustain operating rates much above industry averages.

    (Rs m) 2QFY01 2QFY02 Change 1HFY01 1HFY02 Change
    Sales 83,250 84,660 1.7% 143,080 173,310 21.1%
    Other Income 700 490 -30.0% 830 730 -12.0%
    Expenditure 75,470 76,780 1.7% 129,120 156,340 21.1%
    Operating Profit (EBDIT) 7,780 7,880 1.3% 13,960 16,970 21.6%
    Operating Profit Margin (%) 9.3% 9.3%   9.8% 9.8%  
    Interest 2,840 2,460 -13.4% 4,560 4,890 7.2%
    Depreciation 1,620 2,080 28.4% 2,970 4,070 37.0%
    Profit before Tax 4,020 4,430 10.2% 7,260 9,340 28.7%
    Extraordinary items - 600   - 600  
    Tax 300 320 6.7% 540 670 24.1%
    Profit after Tax/(Loss) 3,720 4,110 10.5% 6,720 8,670 29.0%
    Net profit margin (%) 4.5% 4.9%   4.7% 5.0%  
    No. of Shares (eoy) 4,300 5,202   4,300 5,202  
    Diluted Earnings per share* 3.5 3.2   3.1 3.3  
    P/E Ratio   9.3     8.8  
    * annualised            

    The company has posted impressive growth in gross sales for first-half ended September '01. The largest greenfield refinery in the world, RPL, commenced operations at the start of fiscal '01. With stabilisation of operations the company has been able to achieve higher operating rates. Capacity utilisation, which was 86% in 1QFY01, has consistently ranged near 100% levels subsequently. This lead to a considerable rise in financials for 1QFY02, which is reflected in the half-yearly growth rates. The company achieved an operating rate of 107% in the concerned quarter.

    Sales have grown in tandem with operating expenses, which has enabled the company to sustain operating margins. Raw material expenses have declined by 1.7% YoY, which has prevented an erosion in margins. The company could have benefited from the marginal decline in crude prices. However, for 1HFY02, raw material expenses continued to be higher by 23.5%. Operating profits were supported by increased volume sales. Also, the company had benefited from petrol (motor spirit) exports to the U.S leading to higher realisations.

    In July '01, the outstanding equity shares of the company increased by 449 m on account of conversion of warrant equity shares. The warrants could have been attached with debentures, which are likely to have matured leading to lower interest burden. Outstanding shares at the end of FY01 were 4,753 m.

    The extra-ordinary item is towards receipt of insurance claim of Rs 600 m towards loss in profits from business interruption arising from the Guajart earthquake. The company has been exempted from income-tax for a period of seven years. The tax provisioning is towards minimum alternative tax (MAT).

    At Rs 29.4 the scrip is trading on a multiple of 8.8x 1HFY02 earnings. The valuations in the last six months have declined. The stock was trading at 16.5x FY01 earnings at start of the fiscal.

     

     

    Equitymaster requests your view! Post a comment on "RPL: The heat is on". Click here!

      
     

    More Views on News

    GAIL: A Good Show (Quarterly Results Update - Detailed)

    Mar 27, 2017

    GAIL (India) Ltd has announced results for the quarter ended December 2016. reported 9.4% year on year (YoY) decline in sales, while bottom-line grew 45.4% YoY.

    ONGC: Higher Realisations on Crude Support Performance (Quarterly Results Update - Detailed)

    Mar 17, 2017

    ONGC has announced results for the quarter ended December 2016. The company has reported 9.2 % year on year (YoY) growth in sales, while bottom-line grew 197% YoY.

    Mahanagar Gas Ltd (IPO)

    Jun 21, 2016

    Should one subscribe to Mahanagar Gas IPO?

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    TRACK REL PETRO

    • 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

    MARKET STATS