RIL
A part of the Anil Ambani group of companies, the stock price yesterday spurted up strongly into the green, ending the day over 17% up, in anticipation of very good numbers for Q4 and FY14. The numbers came in after market hours and YoY, they were disappointing. For Q4FY14, the company recorded a consolidated net sales at Rs.3600 crore, up 3% (YoY) though QoQ, it was up 26%. Net profit came in at Rs.621 crore, down 14% (YoY) but up sharply by 38% sequentially. YoY, the rise was possible, despite the lackluster topline, only on account of a 24% drop in total operating costs, an other income of Rs.328 crore and tax write back of Rs.85 crore. Sequentially, the performance is indeed very good though YoY it has slipped.
The company’s interest outgo for the quarter was at Rs.451 crore, up from Rs.376 crore in Q3 and Rs.410 crore in previous Q4. For FY14, the company’s consolidated net sales dropped 3.6% at Rs.13547 and net profit came in flat at Rs.1914 crore v/s Rs.1872 crore but one has to remember here that in FY13, there was an exceptional gain of Rs.379 crore due to sale of RPower shares. Interest outgo for the entire fiscal was at Rs.1696 crore. Consolidated borrowings as at 31st March 2014 stood at Rs.23238 crore. The most eagerly awaited project of the company – Reliance Metro Line in Mumbai is ready for launch but is awaiting only one nod from the Indian Railways; it is expected to start in current Q1.