Reliance Industries Ltd.

Reliance Industries Limited

 

Part-1: Reliance Industries Limited: Data collection: http://knol.google.com/k/narayana-rao-kvss/reliance-industries-ltd/2utb2lsm2k7a/637#

 

Part-2: Graham-Rao Analysis: Reliance Industries Limited: http://knol.google.com/k/saurabh-nagda/graham-rao-analysis-reliance-industries/4864lggxzvtu/1#

 

Past-3: Industry Analysis: Oil and Gas: http://knol.google.com/k/saurabh-nagda/oil-and-gas-sector-industry-analysis/4864lggxzvtu/4#view

 

Part-4: Divident discount model valuation: RIL: http://knol.google.com/k/saurabh-nagda/copy-of-dividend-discount-model-an/4864lggxzvtu/5#view

 

Part-5: Country Analysis: USA: http://knol.google.com/k/narayana-rao-kvss/usa-stock-market-economy/2utb2lsm2k7a/1075?token=gbz4ik6orp7s2tz#view

 

Data collection

(as on 16^th Jan 2009)

Results

 

 

Quarterly results in brief

(Rs crore)

 

	Sep ' 08	Jun ' 08	Mar ' 08	Dec ' 07	Sep ' 07
Sales	46,113.00	43,050.00	38,697.00	35,880.00	33,402.00
Operating profit	6,474.00	6,121.00	6,018.00	5,833.00	5,781.00
Interest	437.00	294.00	272.00	253.00	257.00
Gross profit	6,188.00	6,053.00	6,035.00	5,821.00	5,692.00
EPS (Rs)	28.35	28.27	26.91	55.56	27.53

 

Quarterly results in details

 

	Sep ' 08	Jun ' 08	Mar ' 08	Dec ' 07	Sep ' 07
Other income	151.00	226.00	289.00	241.00	168.00
Stock adjustment	-1,583.00	-2,607.00	1,232.00	677.00	-920.00
Raw material	34,978.00	33,527.00	25,664.00	23,593.00	21,872.00
Power and fuel	-	-	-	-	-
Employee expenses	588.00	651.00	576.00	577.00	471.00
Excise	1,326.00	1,471.00	1,411.00	1,290.00	1,359.00
Admin and selling expenses	-	-	-	-	-
Research and development expenses	-	-	-	-	-
Expenses capitalised	-	-	-	-	-
Other expenses	4,330.00	3,887.00	3,796.00	3,910.00	4,839.00
Provisions made	-	-	-	-	-
Depreciation	1,264.00	1,151.00	1,380.00	1,213.00	1,129.00
Taxation	802.00	792.00	743.00	1,262.00	726.00
Net profit / loss	4,122.00	4,110.00	3,912.00	8,079.00	3,837.00
Extra ordinary item	-	-	-	4,733.00	-
Prior year adjustments	-	-	-	-	-
Equity capital	1,454.00	1,454.00	1,454.00	1,454.00	1,394.00
Equity dividend rate	-	-	-	-	-
Agg.of non-prom. shares (Lacs)	8025.00	7069.00	7069.00	-	-
Agg.of non promotoholding (%)	55.20	48.63	48.63	-	-
OPM (%)	14.04	14.22	15.55	16.26	17.31
GPM (%)	13.38	13.99	15.48	16.12	16.96
NPM (%)	8.91	9.50	10.03	22.37	11.43

 

Note: All data in above section referenced to RIL Annual report at

http://www.ril.com/html/investor/investor.html

http://money.rediff.com/money/jsp/company.jsp?companyCode=12150008

 

Annual results in brief

(Rs crore)

 

	Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Sales	1,39,269.00	1,10,886.00	89,124.00	73,164.00	56,247.00
Operating profit	23,306.00	18,210.00	14,299.00	12,812.00	9,984.00
Interest	1,077.00	1,114.00	877.00	1,469.00	1,435.00
Gross profit	23,124.00	17,289.00	14,105.00	12,793.00	9,687.00
EPS (Rs)	133.82	78.25	65.06	54.32	36.96

 

Annual results in details

 

		Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Other income		895.00	193.00	683.00	1,450.00	1,138.00
Stock adjustment		1,867.00	-970.00	-2,131.00	524.00	605.00
Raw material		90,304.00	77,889.00	58,343.00	45,932.00	34,722.00
Power and fuel		-	-	-	-	-
Employee expenses		2,119.00	1,197.00	978.00	846.00	666.00
Excise		5,826.00	5,523.00	7,913.00	7,113.00	4,445.00
Admin and selling expenses		-	-	-	-	-
Research and development expenses		-	-	-	-	-
Expenses capitalised		-	-	-	-	-
Other expenses		15,847.00	9,037.00	9,722.00	5,937.00	5,825.00
Provisions made		-	-	-	-	-
Depreciation		4,847.00	4,009.00	3,401.00	3,724.00	3,247.00
Taxation		3,552.00	2,372.00	1,635.00	1,497.00	1,141.00
Net profit / loss		19,458.00	10,908.00	9,069.00	7,572.00	5,160.00
Extra ordinary item		4,733.00	-	-	-	-139.00
Prior year adjustments		-	-	-	-	-
Equity capital		1,454.00	1,394.00	1,394.00	1,394.00	1,396.00
Equity dividend rate		-	-	-	-	-
Agg.of non-prom. shares (Lacs)		7069.00	6831.00	7260.00	7418.68	7447.20
Agg.of non promotoHolding (%)		48.63	49.02	52.10	53.24	53.33
OPM (%)		16.73	16.42	16.04	17.51	17.75
GPM (%)		16.50	15.56	15.71	17.15	16.88
NPM (%)		13.88	9.82	10.10	10.15	8.99
	Financial Statements Balance sheet (in Rs Crore).								(Rs crore)

 

	Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Sources of funds
Owner's fund
Equity share capital	1,453.39	1,393.21	1,393.17	1,393.09	1,395.95
Share application money	1,682.40	60.14	-	-	-
Preference share capital	-	-	-	-	-
Reserves & surplus	77,441.55	59,861.81	43,760.90	36,280.35	30,322.97
Loan funds
Secured loans	6,600.17	9,569.12	7,664.90	7,972.90	11,451.14
Unsecured loans	29,879.51	18,256.61	14,200.71	10,811.69	9,493.52
Total	1,17,057.02	89,140.89	67,019.68	56,458.03	52,663.58
Uses of funds
Fixed assets
Gross block	1,04,229.10	99,532.77	84,970.13	55,125.82	53,502.91
Less : revaluation reserve	871.26	2,651.97	4,650.19	2,729.88	2,733.53
Less : accumulated depreciation	42,345.47	35,872.31	29,253.38	24,872.83	21,713.74
Net block	61,012.37	61,008.49	51,066.56	27,523.11	29,055.64
Capital work-in-progress	23,005.84	7,528.13	6,957.79	4,829.29	3,356.81
Investments	22,063.60	16,251.34	5,846.18	17,051.46	13,971.40
Net current assets
Current assets, loans & advances	43,196.37	30,210.99	24,696.15	28,819.15	23,046.36
Less : current liabilities & provisions	32,221.16	25,858.06	21,547.00	21,764.98	16,766.63
Total net current assets	10,975.21	4,352.93	3,149.15	7,054.17	6,279.73
Miscellaneous expenses not written	-	-	-	-	-
Total	1,17,057.02	89,140.89	67,019.68	56,458.03	52,663.58
Book value of unquoted investments	12,746.75	9,438.20	5,322.60	13,582.43	13,435.29
Market value of quoted investments	53,126.09	24,454.46	780.71	4,156.40	948.40
Contingent liabilities	37,157.61	46,767.18	24,897.66	6,579.47	8,559.77
Number of equity sharesoutstanding (Lacs)	14536.49	13935.08	13935.08	13935.08	13963.78

 

 

Profit loss account

(Rs crore)

 

	Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Income:
Operating income	1,33,805.78	1,11,699.03	80,877.79	65,918.83	51,849.63
Expenses
Material consumed	1,00,699.30	80,137.05	57,608.10	47,942.39	36,590.17
Manufacturing expenses	2,768.03	3,373.86	1,814.57	1,211.91	1,048.55
Personnel expenses	2,119.33	2,094.09	978.45	846.40	804.75
Selling expenses	3,229.59	3,661.45	4,733.75	1,824.95	2,262.22
Adminstrative expenses	2,732.47	2,137.88	1,439.32	1,392.62	1,556.42
Expenses capitalized	-175.46	-111.21	-155.14	-9.60	-26.43
Cost of sales	1,11,373.26	91,293.12	66,419.05	53,208.67	42,235.68
Operating profit	22,432.52	20,405.91	14,458.74	12,710.16	9,613.95
Other recurring income	772.17	457.00	588.22	1,384.82	837.31
Adjusted PBDIT	23,204.69	20,862.91	15,046.96	14,094.98	10,451.26
Financial expenses	1,162.90	1,298.90	893.61	1,486.54	1,443.40
Depreciation	4,847.14	4,815.15	3,400.91	3,784.57	3,331.39
Other write offs	-	-	-	-	-
Adjusted PBT	17,194.65	14,748.86	10,752.44	8,823.87	5,676.47
Tax charges	3,559.85	2,585.35	1,642.72	1,505.00	1,148.00
Adjusted PAT	13,634.80	12,163.51	9,109.72	7,318.87	4,528.47
Non recurring items	5,823.49	-220.11	-41.26	188.88	547.30
Other non cash adjustments	48.10	0.51	0.88	-1.31	-13.03
Reported net profit	19,506.39	11,943.91	9,069.34	7,506.44	5,062.74
Earnigs before appropriation	22,271.76	14,973.00	18,037.20	13,098.50	8,405.80
Equity dividend	1,631.24	1,440.44	1,393.51	1,045.13	733.10
Preference dividend	-	-	-	-	-
Dividend tax	277.23	202.02	195.44	146.58	91.64
Retained earnings	20,363.29	13,330.54	16,448.25	11,906.79	7,581.06

 

 

 

Cash flow statement

(Rs crore)

 

	Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Profit before tax	23,010.14	14,520.47	10,704.06	9,068.68	6,301.14
Net cashflow-operating activity	17,426.74	16,870.55	10,301.58	17,288.58	11,777.56
Net cash used in investing activity	-23,955.08	-18,567.01	-12,130.88	-8,162.34	-10,563.07
Netcash used in fin. Activity	8,973.04	306.08	366.67	-5,741.69	-1,137.46
Net inc/dec in cash and equivlnt	2,444.70	-1,390.38	-1,462.63	3,384.55	77.03
Cash and equivalnt begin of year	1,835.35	3,225.73	3,608.79	224.24	147.21
Cash and equivalnt end of year	4,280.05	1,835.35	2,146.16	3,608.79	224.24

 

Dividend

Year	Month	Dividend (%)
2008	Apr	130
2007	Mar	110
2006	Apr	100
2005	Apr	75
2004	Apr	53
2003	Apr	50
2002	Sep	48
2001	Apr	43
2000	Mar	40
1999	Apr	38
1997	Apr	65

 

Bonus announcement

Year	Month	Ratio	Ex Bonus Date
1997	Sep	1:1	27/10/1997
1983	Oct	3:5	-

 

 

Note: All data in above section referenced to RIL Annual report at

http://www.ril.com/html/investor/investor.html

http://money.rediff.com/money/jsp/company.jsp?companyCode=12150008

 

 

Ratio Analysis

(Rs crore)

 

	Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Per share ratios
Adjusted EPS (Rs)	93.80	87.29	65.37	52.52	32.43
Adjusted cash EPS (Rs)	127.14	121.84	89.78	79.68	56.29
Reported EPS (Rs)	133.86	85.71	65.08	54.34	36.95
Reported cash EPS (Rs)	167.20	120.26	89.49	81.49	60.81
Dividend per share	13.00	11.00	10.00	7.50	5.25
Operating profit per share (Rs)	154.32	146.44	103.76	91.21	68.85
Book value (excl rev res) per share (Rs)	542.74	439.57	324.03	270.35	227.15
Book value (incl rev res) per share (Rs.)	548.73	458.61	357.40	289.94	246.73
Net operating income per share (Rs)	920.48	801.57	580.39	473.04	371.32
Free reserves per share (Rs)	520.59	416.90	301.36	247.94	204.79
Profitability ratios
Operating margin (%)	16.76	18.26	17.87	19.28	18.54
Gross profit margin (%)	13.14	13.95	13.67	13.54	12.11
Net profit margin (%)	14.45	10.64	11.13	11.25	9.79
Adjusted cash margin (%)	13.73	15.13	15.35	16.49	14.91
Adjusted return on net worth (%)	17.28	19.85	20.17	19.42	14.27
Reported return on net worth (%)	24.66	19.49	20.08	20.09	16.26
Return on long term funds (%)	17.18	19.83	18.88	19.44	14.99
Leverage ratios
Long term debt / Equity	0.35	0.32	0.36	0.40	0.49
Total debt/equity	0.46	0.45	0.48	0.49	0.66
Owners fund as % of total source	68.38	68.76	67.37	66.72	60.22
Fixed assets turnover ratio	1.29	1.13	0.95	1.20	0.97
Liquidity ratios
Current ratio	1.34	1.17	1.15	1.32	1.37
Current ratio (inc. st loans)	0.97	0.77	0.83	1.07	0.98
Quick ratio	0.88	0.68	0.67	0.96	0.92
Inventory turnover ratio	10.57	10.65	9.60	10.87	8.80
Payout ratios
Dividend payout ratio (net profit)	9.80	13.75	17.52	15.73	15.98
Dividend payout ratio (cash profit)	7.85	9.80	12.74	10.49	9.71
Earning retention ratio	86.01	86.50	82.56	83.72	81.79
Cash earnings retention ratio	89.68	90.33	87.30	89.27	89.51
Coverage ratios
Adjusted cash flow time total debt	1.97	1.64	1.75	1.69	2.66
Financial charges coverage ratio	19.95	16.06	16.84	9.48	7.24
Fin. charges cov.ratio (post tax)	21.90	13.90	14.95	8.64	6.88
Component ratios
Material cost component (% earnings)	73.86	72.32	73.86	71.93	69.40
Selling cost Component	2.41	3.27	5.85	2.76	4.36
Exports as percent of total sales	56.80	52.40	38.10	36.02	22.80
Import comp. in raw mat. consumed	93.96	94.04	95.41	91.73	95.39
Long term assets / total Assets	0.70	0.73	0.72	0.63	0.66
Bonus component in equity capital (%)	33.14	34.57	34.58	34.58	34.51

 

 

Note: All data in above section referenced to RIL Annual report at

http://www.ril.com/html/investor/investor.html

http://money.rediff.com/money/jsp/company.jsp?companyCode=12150008

 

RIL IN NEWS

RIL wins a Deep Water block in NELP VII
December 24, 2008

Reliance Industries Ltd (RIL) has informed regarding a Press Release titled RIL wins a Deep Water block in NELP VII.

Reliance Industries clarifies on news item

November 05, 2008

With reference to the news item appearing in a leading financial daily about the Company shutting down five Polyester Units in Patalganga, titled RIL shuts five polyester units, Reliance Industries Ltd has clarified that this news item is factually incorrect.

There are no plans currently to shift any plants from Patalganga to Nagothane.

The PTA and LAB facilities are currently operating at full capacity in Patalganga. Some of the polyester plants are shut for routine maintenance and enhancing product capabilities. The Company expect to restart from this month.

The Patalganga site had announced a Voluntary Retirement Scheme on October 05, 2008 as part of its normal cost optimization exercise and over 400 people had opted for the same.

27-Oct-2008 Reliance Industries Polypropylene plant in Jamnagar down for plant maintenance

23-Oct-2008 Oil Production Started In Record Time Net Profit Of US$ 1.75 Billion, Increase Of 10% Exports Of US$ 12.4 Billion, Increase Of 57% Crude Processed 16.34 Million Tonnes

03-Oct-2008 Reliance Industries Limited-Statement

02-Oct-2008 RIL's Hazira Unit wins Golden Peacock National Award for Innovation 2008

02-Oct-2008 Reliance wins Golden Peacock Global Award for Excellence in Corporate Governance 2008

21-Sep-2008 Reliance Industries Commences Production in KG-D6 Block

10-Sep-2008 Reliance Industries Reiterates its Humanitarian Zeal Donates Rs 11 crore to Bihar CM's Relief Fund

09-Sep-2008 Reliance Industries sets up trading subsidiaries in London and Singapore

01-Sep-2008 Vimal Unveils Exclusive Showrooms in Kolkata Vimal to Offer Ready to Wear Apparel for Men

01-Sep-2008 Development of KG D6 Basin

12-Aug-2008 Reliance Retail brings Hamleys, UK's finest toys to India.

24-Jul-2008 Net Profit Of US$ 955 Million, Increase Of 13% Petrochemicals Production Increased By 4% Crude Processed 8.13 Million Tonnes, Increase Of 1.5% Oil & Gas Development Projects In Advanced Stages Of Implementation

15-Jul-2008 Vimal Factory outlet at Nagpur

21-Jun-2008 RIL conferred EFQM 5 Stars recognition for Business Excellence 2008 The first Indian / East Asian Company to achieve this honour

18-Jun-2008 UAA Dhirubhai Ambani Lifetime Achievement Award to Prof. Robert H. Grubbs

02-Jun-2008 RIL's Hazira Unit Bags 'Golden Peacock Award' for Combating Climate Change - 2008

26-May-2008 Reliance and UNAIDS launching an innovative partnership for AIDS

09-May-2008 RIL now to produce PE 100 Polyethylene Pipe grade M/s Bodycote Certifies RIL's Relene 46GP003 with PE 100 certification

02-May-2008 Reliance Industries Announces Construction LOI with NOVA Chemicals

24-Apr-2008 Field Development Plan of MA Field (Dhirubhai 26) Approved

21-Apr-2008 Record Turnover, EBITDA And Net Profit For The Year Highest Dividend Payout Refinery And Oil & Gas Development Projects In Advanced Stages Of Implementation

01-Apr-2008 Second Gas Discovery in Deepwater Exploration Block in Krishna Basin Two discoveries enhances Krishna Basin Prospectivity

26-Mar-2008 Vimal Relaunches Exclusive Showrooms in Cochin Vimal to Offer Ready to Wear Apparel for Men

18-Mar-2008 Reliance Industries Limited Statement

07-Mar-2008 Vimal Relaunches Exclusive Showrooms in Chennai Vimal to Offer Ready to Wear Apparel for Men

26-Feb-2008 Reliance Strikes Eighth Gas Discovery in Block NEC - 25 in the Mahanadi Basin

13-Feb-2008 First Gas Discovery in Deepwater Block in the Krishna Basin

06-Feb-2008 Project Drishti - a unique RIL - NAB initiative crosses 5,000 nationwide corneal graft surgeries for the underprivileged "Largest corneal grafting drive undertaken by a single corporate in India"

17-Jan-2008 Record Quarterly Profit, Up 26% Y-o-Y Turnover Exceeds Rs. 1,00,000 Crore In Nine Months For The First Time Expanding Global Footprint Across All Businesses Refinery And Oil & Gas Development Projects In Advanced Stages Of Implementation

14-Jan-2008 RIL makes Another Gas Discovery in Shallow Water Block in the Krishna Basin

14-Jan-2008 Jamnagar Refinery Adjudged Winner of Golden Peacock National Training Award (2007)

12-Jan-2008 Reliance Industries Limited, Hazira Manufacturing Division Adjudged Winner of Golden Peacock Innovation Award (2007)

 

Note: All Data in above section is referenced at http://www.ril.com/downloads/

 

Introduction to company:

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and spacial economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.

The Company's operations can be classified into four segments namely:

• Petroleum Refining and Marketing business
• Petrochemicals business
• Oil and Gas Exploration & Production business
• Others

The Company's refinery at Jamnagar is the third largest refinery at a single location in the world.

The Company is:

• The world's largest producer of Polyester Fibre and Yarn
• 4th largest producer of Paraxylene (PX) and Purified Terepthalic Acid (PTA)
• 6th largest producer of Mono Ethylene Glycol (MEG)
• 7th largest producer of Polypropylene (PP)

 

Note: All data in above section referenced to

http://www.ril.com/html/investor/investor.html

 

 

 

Assignment of

PGDIM, NITIE

2008-2010

 

Material to be posted: Company Analysis.

Original knol - Knol Number 637