RIL - Q4FY13 RESULTS

RIL achieved a turnover for the year ended 31st March 2013 of Rs.371,119 crore ($ 68.4 billion), an increase of 9.2% on a year-on-year (Y-o-Y) basis. The Refining business revenues increased by 11.6%, Petrochemicals by 9.3% while Oil & Gas revenues decreased by 35.2% on account of lower production. Higher prices accounted for 11.0% growth in revenue which was partly offset by the decrease in volumes by 1.8%. Exports were higher by 15.0% at Rs.239,226 crore ($ 44.1 billion) as against Rs.208,042 crore in FY 2011-12.

Higher crude oil prices resulted in consumption of raw materials increasing by 11.4% to Rs.306,127 crore ($ 56.4 billion) on a Y-o-Y basis.

Operating profit before other income and depreciation decreased by 8.4% from Rs.33,619 crore to Rs.30,787 crore ($ 5.7 billion) due to reduction in oil & gas and petrochemicals earnings, partially offset by higher operating profit from refining. Net operating margin was lower at 8.5% as compared to 10.2% on a Y-o-Y basis due to lower production of oil & gas and weaker margins in petrochemicals business.

Other income was higher at Rs. 7,998 crore ($ 1.5 billion) as against Rs.6,192 crore primarily due to an increase in cash flows from operations that were deployed in bank deposits, mutual funds and Government securities / bonds.

Profit after tax was Rs.21,003 crore ($ 3.9 billion) as against Rs.20,040 crore on a Y-o-Y basis. Basic earnings per share (EPS) for the year ended 31st March 2013 was ` 64.8 ($ 1.2) against Rs.61.2 for the previous year.

Outstanding debt as on 31st March 2013 was Rs.72,427 crore ($ 13.3 billion) compared to Rs.68,259 crore as on 31st March 2012. RIL had cash and cash equivalents of ` 82,975 crore ($ 15.3 billion). These were in bank deposits, mutual funds and Government securities / bonds. RIL is debt free on a net basis as at 31st March 2013.

DOMESTIC OPERATIONS

KG-D6

Cumulative production from the block was 2.91 million barrels of crude oil, 0.40 million barrels of condensate and 336 BCF of natural gas in FY13, a reduction of 41%, 43% and 39% respectively on a Y-o-Y basis. The reduction in production was due to geological complexity, natural decline in the fields, higher water ingress and effect of shutdown in MA field on account of FPSO maintenance for a period of 7 days.

Panna-Mukta and Tapti (PMT)

Panna-Mukta fields produced 8.2 million barrels of crude oil and 71.3 BCF of natural gas in FY2012-13, reduction of 19% in case of crude oil & maintained production in case of natural gas on Yo-Y basis. The decrease in oil production was due to natural decline, deferment of Panna-L wells and lower-than-expected oil gains from well interventions.

Tapti produced 0.54 million barrels of condensate and 43.9 BCF of natural gas in FY 2012-13, a decline of 40% and 41% respectively on Y-o-Y basis. The decrease was due to a natural decline in reserves and under-performance of a few wells.

REFINING & MARKETING BUSINESS

During FY 2012-13, RIL Jamnagar refineries processed 68.5 million tons of crude and clocked an average utilization of 110% as compared to 109% achieved in the previous year. In comparison, average utilization rates for refineries globally in FY 2012-13 were 83.7% in North America, 80.5% in Europe and 85.8% in Asia which were marginally higher than the previous year. Revenue for RIL’s Refining & Marketing segment increased by 13.2% from Rs.294,734 crore to Rs.333,774 crore ($ 61.5 billion). Increase in higher prices accounted for 12.3% growth in revenue while volumes accounted for 0.9% growth in revenue.

RIL’s Gross Refining Margin (GRM) for the year ended 31st March 2013 was at $ 9.2/ bbl as against $8.6 /bbl in the previous year.

Total exports of refined products from both refineries reached $ 39.3 billion during the year as compared to $ 36.0 billion in the previous year. Exports of refined products were 41.2 million tons as compared to 39.6 million tons during the same period last year.

PETROCHEMICALS BUSINESS

On a Y-o-Y basis, petrochemical revenue increased by 9.3% from Rs.80,625 crore to Rs.88,108 crore ($ 16.2 billion). Increase in prices accounted for 10.6% growth in revenue which was partly offset by 1.3% lower volumes during the year.

EBIT margin for the year was 8.3% as compared to 11.1% in the corresponding period of the previous year. The decrease was primarily due to lower margins in polyester fibre and yarn products.

ORGANIZED RETAIL

The retail business accomplished a milestone by crossing a turnover of Rs.10,000 crore in the last financial year. Turnover grew by 42% to Rs.10,800 crore as compared to the previous year. The business achieved cash breakeven with earnings before Depreciation, Finance Cost and Tax expense (PBDIT) of Rs.78 Crore.

At the end of March 2013, the company operated over 1,450 stores in 129 cities across India. The membership of “Reliance One” loyalty program was patronised by over 13 million members