RIL: Margins 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?  

RIL: Margins under pressure

Oct 31, 2001

Reliance Industries Ltd. (RIL) is set to declare second quarter and half-yearly results for fiscal '02 this evening. We expect the company to report a marginal growth in topline not including merchant sales while post-tax profits are expected to be lower by 12%.

(Rs m)2QFY012QFY02**Change
Sales 67,200 68,544 2.0%
Merchant sales 16,740 -
Total sales 83,940 68,544 -18.3%
Other Income 760 780 2.6%
Expenditure 70,620 56,343 -20.2%
Operating Profit (EBDIT) 13,320 12,201 -8.4%
Operating Profit Margin (%)15.9%17.8%
Interest 3,330 3,084 -7.4%
Depreciation 3,400 3,427 0.8%
Profit before Tax7,350 6,469 -12.0%
Tax - -
Profit after Tax/(Loss) 7,350 6,469 -12.0%
Net profit margin (%)8.8%9.4%
No. of Shares (eoy) 1,054 1,054
Diluted Earnings per share*27.9 24.6
P/E Ratio 10.1
*annualised ** expectations

Realisations on key products of the company have come under pressure over the quarter ended September '01 as compared to the previous year. Except for POY, PET and LAB, company prices have fallen across the board by 8%-20%. There seems to be more downside risk in topline growth. That said, the company has reported utilisation levels of 104% for 1HFY02. Production, YoY, is higher by an estimated 8.6%. Consequently, drop in realisations could be compensated through higher volume sales.

At Rs 249 the RIL scrip is trading on a multiple of 10.1x 2QFY02 annualised earnings.

Equitymaster requests your view! Post a comment on "RIL: Margins under pressure". Click here!

  

More Views on News

5 Indian Companies that are Leading the Green Hydrogen Revolution (Views On News)

Nov 2, 2021

As the green energy movement grows, Indian companies are on a mission to adopt green hydrogen, the cleanest form of energy in the world.

RELIANCE IND. Announces Quarterly Results (2QFY22); Net Profit Up 47.1% (Quarterly Result Update)

Oct 26, 2021 | Updated on Oct 26, 2021

For the quarter ended September 2021, RELIANCE IND. has posted a net profit of Rs 154 bn (up 47.1% YoY). Sales on the other hand came in at Rs 1,741 bn (up 49.8% YoY). Read on for a complete analysis of RELIANCE IND.'s quarterly results.

RELIANCE IND. 2020-21 Annual Report Analysis (Annual Result Update)

Oct 18, 2021 | Updated on Oct 18, 2021

Here's an analysis of the annual report of RELIANCE IND. for 2020-21. 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 (1QFY22); Net Profit Up 7.1% (Quarterly Result Update)

Jul 26, 2021 | Updated on Jul 26, 2021

For the quarter ended June 2021, RELIANCE IND. has posted a net profit of Rs 138 bn (up 7.1% YoY). Sales on the other hand came in at Rs 1,444 bn (up 58.2% YoY). Read on for a complete analysis of RELIANCE IND.'s quarterly results.

RELIANCE IND. 2020-21 Annual Report Analysis (Annual Result Update)

Jul 8, 2021 | Updated on Jul 8, 2021

Here's an analysis of the annual report of RELIANCE IND. for 2020-21. 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

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.

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.

6 Penny Stocks that Rallied 1,000%+ in One Year (Views On News)

Dec 6, 2021

These penny stocks shed their penny status by surging 1,000% or more in the last one year.

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.

More

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

RELIANCE IND. SHARE PRICE


Dec 8, 2021 01:16 PM

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. - CHENNAI PETROLEUM COMPARISON

COMPARE RELIANCE IND. WITH

MARKET STATS