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.
RIL: Margins under pressure - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 31, 2001

    RIL: Margins under pressure

    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) 2QFY01 2QFY02** 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 Tax 7,350 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

    Sorry! There are no related views on news for this company/sector.

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    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.

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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


    Aug 18, 2017 (Close)


    • 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


    Detailed Quarterly Results With Charts