RIL slips after reporting Q4 results

Reliance Industries (RIL) dropped 0.09% to Rs 926 at 9:30 IST on BSE on profit booking after announcing Q4 results.

The result was announced after market hours on Friday, 17 April 2015.

Meanwhile, the BSE Sensex was down 12.11 points, or 0.04%, to 28,429.99.

On BSE, so far 1.15 lakh shares were traded in the counter, compared with an average volume of 4.24 lakh shares in the past one quarter.

The large-cap stock hit a high of Rs 937.95 and a low of Rs 913 so far during the day. The stock had hit a 52-week high of Rs 1,142.50 on 16 May 2014. The stock had hit a 52-week low of Rs 796.75 on 30 March 2015.

From a recent low of Rs 824 on 6 April 2015, the stock had gained 12.55% to Rs 927.45 on 16 April 2015 in seven sessions. The stock had dropped by 0.06% to Rs 926.85 ahead of Q4 results on Friday, 17 April 2015.

RIL's consolidated net profit rose 8.5% to Rs 6381 crore on 33.3% drop in turnover to Rs 70863 crore in Q4 March 2015 over Q4 March 2014. RIL's net profit of Rs 6381 crore in Q4 March 2015 was a record quarterly net profit for RIL on consolidated basis.

RIL attributed the sharp fall in turnover in Q4 March 2015 to a sharp fall in benchmark crude oil price. RIL's gross refining margins (GRM) edged up to $10.1 per barrel in Q4 March 2015, from $9.3 per barrel in Q4 March 2014. On sequential basis, the GRM rose sharply from $7.3 a barrel in Q3 December 2014. RIL's GRM edged up to $8.6 a barrel in the year ended 31 March 2015 (FY 2015) from $8.1 a barrel in the year ended 31 March 2014 (FY 2014).

RIL said in a presentation to investors after the company's Q4 March 2015 results that the company plans to restart its entire network of 1,400 retail fuel pumps during the year ending 31 March 2016 (FY 2016). Over 320 fuel outlets have already become operational, RIL said.

RIL's non-operational income rose 3.57% to Rs 2172 crore in Q4 March 2015 over Q4 March 2014. RIL said the increase in non-operational income was primarily on account of higher profit on sale of investments.

With regard to the company's US shale gas business, RIL said that the challenging market outlook would most likely curtail near-term growth for the shale gas business. Given the current weak commodity price environment, the company is focusing on capital preservation by moderating activity levels, reducing service costs and improving efficiencies in the shale gas business, RIL said. Ensuring profitable development and retaining optionality through high grading acreages and improving netbacks will be the key challenges going forward, RIL said. RIL said that the long term outlook for its US shale gas business remains promising.

RIL's total capital expenditure stood at a little over Rs 1 lakh crore in FY 2015, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US shale gas projects.

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