RIL Declares Q4, Full-Year Financial Results: Nirmal Bang

Reliance IndustriesRevenues declined by 23.9 % y-o-y to Rs 28362 crs in Q4 09. Decline in revenues is attributable to poor performance across segments. Revenue from Petrochemicals segment declined 31.1% y-o-y to Rs 9724 crs.

Refining segment registered decline in revenue of 24.6% y-o-y to Rs 21631 crs, while revenue from oil&gas segment declined by 11.1% y-o-y to Rs 736 crs.

In FY 2009 revenues increased by 9.6% y-o-y to Rs 146291 crs. Growth in revenues is attributable to decent performance across segments. Revenue from Petrochemicals segment remained flat at Rs. 52767 crs. Refining segment registered increase in revenue of 11.5% y-o-y to Rs 112351 crs, whereas revenue from oil&gas segment witnessed growth of 29.1% y-o-y to Rs 3489 crores.

The company reported a Gross Refining Margin (GRMs) of US$ 12.2 / bbl for FY 2009 as compared to US$ 15.0 / bbl, whereas for Q4 09 GRM's stood at US$ 9.9 / bbl.

Operating profit declined by 9.7% y-o-y to Rs 5437 crs in Q4 09. Decline in operating profit is attributable to increase in purchase cost. Purchase cost as a percentage of revenue increased from 3.2% to 20.5% as a percentage of revenue in 4Q 09. On a full year basis, operating profit witnessed a growth of 0.4% to Rs 23395 crs.

Interest & Depreciation increased by 75.4% and 3.8% to Rs 477 crs and Rs. 993 crs respectively in Q4 09

Other income increased by 243.6% to Rs 993 crs in Q4 09, whereas on a full year basis it increased by 127.2% to Rs 2033 crs

In Q4 09, reported PAT declined by 9.4% to Rs 3546 crs. However the company has made an exceptional provision of Rs 370 crs towards estimated claims on account of subsidiaries. Adjusting PAT for the exceptional item adjusted PAT is Rs 3873.8 crs witnessing a decline of 1.0% y-o-y in Q4 09.

On a full year basis, reported PAT declined by 21.5% to Rs 15279 crs in FY 2009, whist adjusted PAT stood registered a growth of 2.2% y-o-y to Rs 15606 crs.

Company reported an adjusted EPS of Rs 24.6 for Q4 09 as compared to Rs 26.9 in Q4 08. For FY 2009 the adjusted EPS was at Rs 99.1 as against Rs 105 in FY 2008.

The share is currently trading at PE of 17.5x for FY09

The outstanding debt as on 31st March 2009 was Rs 53457 crore compared to Rs 36480 crore as on 31st March 2008, whereas it had a cash and cash equivalent of Rs.
25000 crs as on 31st March 2009.

The company incurred a capital expenditure including interest capitalization of Rs 24907 crs in FY 2009.

The Jamnagar refinery processed 32.0 mn tonnes of crude, a utilization rate of 97% as compared to 31.8 mn tonnes of crude oil processed during the previous year. Average refinery utilization was 83.0% in North America, 81.9% in Europe and 80.5% in the Asia-Pacific region

Polymer (PP, PE and PVC) production volumes decreased by 9% to 3,076 KT. Production was lower primarily on account of planned shutdown of Polypropylene (PP) plant at Jamnagar in October 2008 to improve product swing capability and yield. RIL produced 1,755 KT of ethylene and 696 KT of propylene, a decrease of 7% each over the previous year primarily due to lower Propane cracking.

Polyester (PFY, PSF and PET) production volume decreased by 2% to 1,534 KT. RIL's fiber intermediates (PX, PTA and MEG) production decreased by 3% to 4,583 KT during the year

On 2nd April 2009, gas production commenced from KG D6 block (D1 / D3 discoveries). RIL has signed Gas sales purchase agreement (GSPA) with customers in fertilizer sector for supply from KG D6. The GSPA was signed with 12 customers in fertilizer sector for supply of approximately 15 MMSCMD natural gas.

Return on Capital Employed ROCE was 20.7% FY 2009.

Return on Equity ROE was 21.0% for FY 2009.

Net Debt to Equity is 0.24 as on 31st March 2009.

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