• OUTLOOK ARENA
  • VIEWS ON NEWS
  • JULY 20, 2000

Reliance declares meteoric growth

RIL has reported a meteoric growth in topline of 72%. The impetus for growth has come from both volume as well as realisations. RIL has reported a volume growth of 38% and average realisation growth of 25%. RIL's exports have grown 7.5 times and contributed to 20% of its topline.

(Rs m) 1QFY00 1QFY01 Change
Sales 38,370 66,150 72.4%
Other Income 1,500 780 -48.0%
Expenditure 30,870 54,580 76.8%
Operating Profit (EBDIT) 7,500 11,570 54.3%
Operating Profit Margin (%) 19.5% 17.5%
Interest 1,830 2,980 62.8%
Depreciation 2,070 3,250 57.0%
Profit before Tax 5,100 6,120 20.0%
Tax - -
Profit after Tax/(Loss) 5,100 6,120 20.0%
Net profit margin (%) 13.3% 9.3%
No. of Shares (eoy) 934 1,054
Diluted Earnings per share* 19.4 23.2
*(annualised)

The operating profit has shown a very healthy growth. However, OPM has declind by 2% points. The decline in OPM is largely due to feedstock prices, crude oil, which have increased by over 30% in this period.

Reliance has reiterated its intention of focusing on new growth areas. It new initiative include power, telecom and infocom. It is also planning on consolidating the balace sheet of Reliance Petroleum (RPL) and Bombay Surburban Electricity Supply (BSES). This should further boost the bottomline of RIL.

Historically, RIL has traded at a three year average P/E multiple of 12.8. Currently, it is trading at a multiple of 15 to 1QFY01 annualised earnings.

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 (Research Analyst) bearing Registration No. INH000000537 (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, Canada or the European Union countries, 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 (Research Analyst)
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