RIL Meets Expectations- Stock Likely To Make An Up-Move
DSIJ Intelligence / 15 Oct 2013
RIL announced its Q2 results which are in line with street estimates. The stock is likely to move upwards on the bourses today.
Reliance Industries (RIL) announced its Q2FY14 results on 14th October and the results have in line with the street estimates. For the Q2FY14 its net profit grew 2.6 percent on sequential basis and around 1.5 percent on yearly basis to Rs 5,490 crore. The results are mainly supported by strengths in its petrochemical and refining businesses. Street had estimated that Reliance would report a net profit of Rs 5,400 crore. This clearly indicates that the results are in-line with street estimates.
Net sales of the company rose 17.60 percent to Rs 106523 crore in the September quarter, compared to Rs 90589 crore in June quarter and Rs 93266 crore in September 2012.
The management has stated in presentation that the Strong growth in operating income for the quarter was partially offset by higher depreciation and lowers other income. Other income declined due to lower profit on sale of investments Strong operating performance from petrochemicals segment driven by volume and margin growth. Higher volumes and currency impact boosted refining performance.
Gross refining margin (GRM) stood at USD 7.7 / BBL in September quarter as against USD 8.4 / BBL in June quarter of 2013 and around USD 9.5 /BBL in September 2012.
Retail business
Retail business turnover rose 41 percent Y-o-Y to Rs 6,930 crore for the first six months of the financial year and jumped 31 percent on yearly basis to Rs 3,456 crore in second quarter. "The business operates 10 million sq. ft. of retail space with the addition of 58 stores across all formats. It now operates over 1,550 stores across 136 cities in India," the company said in its release.
Reliance Jio Infocomm
Reliance Jio Infocomm has received letter of intent (LoI) from Department of Telecommunication for award of unified licence with authorization for all services under unified license in all service areas. Other income fell by 18.7 percent Q-o-Q to Rs 2,060 crore in July-September quarter.
As regards the results, the performance has been in line with the street estimates. We expect the scrip to witness an up-move on the bourses.
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