Reliance Industries' (RIL) consolidated net profit fell 4.5% to Rs 5256 crore on 20.4% decline in revenue to Rs 96330 crore in Q3 December 2014 over Q3 December 2013. The result hit the market after market hours on Friday, 16 January 2015.
RIL attributed the decline in revenue in Q3 December 2014 to a sharp 30% fall in benchmark oil price. Exports from India declined 21.5% to Rs 58507 crore in Q3 December 2014 over Q3 December 2013.
Operating profit before other income and depreciation rose 0.4% to Rs 8689 crore in Q3 December 2014 over Q3 December 2013.
The company's gross refining margin (GRM) dropped to $7.3 a barrel in Q3 December 2014 from $8.3 a barrel in Q2 September 2014 and from $7.6 a barrel in Q3 December 2013.
RIL said that Q3 December 2014 witnessed heightened volatility across the hydrocarbon business. Benchmark crude oil prices declined by around 40% through the quarter, with consequent impact on petrochemical feedstock and product prices, the company said. While headline deltas were strong, declining feedstock prices impacted buying sentiment across product categories, it said. Downstream converters ran down inventories, operating at minimal stock levels, the company added. RIL, in line with its operating strategy, aggressively sold down stocks to maintain optimal levels of inventory, which impacted realized deltas and margins for products, the company said in a statement. This coupled with lower holding value of closing-stock impacted performance of refining and petrochemicals businesses, RIL said in a statement.
Commenting on the company's Q3 results, Mukesh D. Ambani, Chairman and Managing Director, RIL said, "Our focus on operational efficiency and the superior configuration of assets helped us deliver an industry-leading performance in the refining and petrochemicals business despite sharp decline in crude and feedstock prices. The performance also highlights the robustness of our risk management and proficiency of people and processes across the integrated chain. We continued to advance our refining and petrochemicals business capital investments, which will come to fruition over the next 4-6 quarters. These investments demonstrate our commitment to creating value through business cycles. During the quarter, Reliance Retail registered YoY growth of 19% in turnover with improved margins and profitability".
RIL's outstanding debt as on 31 December 2014 was at Rs 150007 crore compared to Rs 138761 crore as on 31 March 2014. Cash and cash equivalents as on 31 December 2014 were at Rs 78691 crore. These were in bank deposits, mutual funds, CDs and Government securities/bonds, RIL said in a statement.
Wipro's consolidated net profit rose 9% to Rs 2190 crore on 6% growth in total revenue to Rs 11990 crore in Q3 December 2014 over Q3 December 2013. The resutl hit the market after market hours on Friday, 16 January 2015. The results are as per International Financial Reporting Standards (IFRS).
Wipro's IT services segment revenue in rupee terms rose 10% to Rs 11340 crore in Q3 December 2014 over Q3 December 2013.
IT services revenue rose 7% to $1.795 billion in Q3 December 2014 over Q3 December 2013. Non-GAAP constant currency IT services revenue in dollar terms rose 3.7% to $1.836 billion, within the company's earlier guidance range of $1.808 billion to $1.842 billion.
Wipro expects its revenue from IT services business at between $1.814 billion to $1.85 billion in Q4 March 2015.
Commenting on the company's Q3 performance, Azim Premji, Chairman of Wipro said, "Developments in the Global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms".
T K Kurien, Executive Director & CEO of Wipro said, "We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies as well as save costs in the traditional business".
Suresh Senapaty, Executive Director & CFO of Wipro said, "During the quarter, we saw all round growth led by growth in our Healthcare & Life Sciences business and Global Infrastructure Services. The share of fixed price contracts increased to over 55% of engagements - a reflection of the maturity of Wipro's customer engagement model".
Meanwhile, Wipro on Friday, 16 January 2015, announced that Suresh Senapaty, the current Chief Financial Officer (CFO) and Executive Director (ED) will retire on attaining the age of superannuation on 31 March 2015 after completing a distinguished career spanning over three decades with the company. Jatin Dalal, Senior Vice President - Finance will take over the role of CFO, effective 1 April 2015, Wipro said.
Coal India will be in focus. The Union Finance Minister Arun Jaitley, on 17 January 2015, assured the representatives of various Trade Unions that the Government has no intention to privatise either railways or Coal India. He said that focus of his Government is to create more jobs and employment opportunities beside safeguarding the existing jobs and give better environment for ease of living for the common man. The Finance Minister said that's why we need more money for investment in infrastructure sector in order to create more job opportunities for our youth. He said that the Government wants to create better social security system for the labour force working both in organized and unorganized sector.
PSU OMCs and auto stocks will be in focus. The prices of petrol and diesel were decreased with effect from midnight of 16 January 2015. Indian Oil Corporation (IOC) said that the petrol price was cut down by Rs 2.42 a litre at Rs 58.91 a litre at Delhi (including state levies) with corresponding decrease in other states while diesel price has come down by Rs 2.25 a litre at Rs 48.26 a litre at Delhi (including state levies) with corresponding decrease in other states.
Since the last revision, the international prices of both petrol and diesel have continued to be on a downtrend, however the rupee-dollar exchange rate has depreciated. The combined impact of both these factors warrant a decrease in Retail Selling Prices of both petrol and diesel, IOC said in a statement.
Meanwhile, the government on Friday, 16 January 2015 announced the hike in excise duty on petrol and diesel by Rs 2 per litre. A Finance Ministry notification on Friday, 16 January 2015 said that excise duty on unbranded petrol is being hiked to Rs 8.95 per litre and that on unbranded diesel to Rs 7.96 per litre.
Mahindra & Mahindra Financial Services (MMFSL)'s consolidated net profit declined 14% to Rs 157 crore on 12% growth in total income to Rs 1522 crore in Q3 December 2014 over Q3 December 2013. The result hit the market on Saturday, 17 January 2015.
Oberoi Realty's consolidated net profit rose 16.4% to Rs 79.23 crore on 18.09% growth in revenue to Rs 219.60 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours on Friday, 16 January 2015.
NTPC after market hours on Friday, 16 January 2015 said that it has signed a term loan agreement for Rs 10000 crore with State Bank of India. The loan has a door to door tenure of 15 years and will be utilized to part finance the capital expenditure of NTPC.
Tata Steel will be watched. Tayo Rolls said after market hours on Friday, 16 January 2015 that the Committee of the board of directors of the company at their meeting held on 16 January 2015, have allotted 5 lakh 8.50% non-cumulative redeemable preference shares of Rs 100 each to Tata Steel on preferential basis.
GAIL (India) after market hours on Friday, 16 January 2015 said that there was an incident of fire on the DESU - Maruti pipeline of GAIL (India) near Venkateswara College, Dhaulakuan, New Delhi on 16 January 2015. The incident occurred due to a third party drilling activity without prior permission taken by the agency from GAIL, in spite of the pipeline warning markers located in close proximity to the site, the company said. Immediately on receiving the information, GAIL's pipeline sectionizing valves were closed by remote operation from the regional control room. With the support of Delhi Fire services and IGL Fire Tenders, the fire was extinguished, the company said. The Army Supply Corps located in the vicinity also rendered support. There have been no casualties, GAIL (India) said. However, the fire damaged a couple of vehicles parked nearby. Because of the incident, some CNG stations of IGL may get affected temporarily and efforts are being made to restore gas supply at the earliest. Restoration work of the pipeline has already started, GAIL (India) said.
Adani Power after market hours on Friday, 16 January 2015 said that its board of directors at its meeting held on 16 January 2015, approved the proposal to divest the company's holding of 90.91% equity shares in Adani Transmission (India) to Adani Transmission, a wholly owned subsidiary of Adani Enterprises subject to requisite approvals, if any.
Allahabad Bank after market hours on Friday, 16 January 2015 said it has successfully raised BASEL III compliant Tier 2 bonds aggregating to Rs 500 crore through private placement.
TVS Motor Company on Saturday, 17 January 2015 said that in celebration of TVS Jupiter's completion of one year as India's most awarded scooter every, the company is bringing out a special edition TVS Jupiter. The special status will be distinguished by way of exterior detail with a unique, never before colour and additional features, TVS Motor said. Only a limited number of this special edition TVS Jupiter will be made, the company said in a statement.
Gateway Distriparks on Saturday, 17 January 2015 said that Blackstone GPV Capital Partners (Investor) has sent a letter dated 16 January 2015 to the company and the Company's subsidiary company - Gateway Rail Freight (GRFL) requesting the company to effect an IPO of GRFL in accordance with the terms of the share subscription & shareholders agreement (SSHA) dated 9 November 2009. The company will respond to the request from the investor in due course, Gateway Distriparks said. This will have no impact on the operations or profitability of the company, it added.
Vimal Oil & Foods on Saturday, 17 January 2015 said that its board of directors will meet on 29 January 2015, to consider acquisition of target business of Gujarat Spices and Oilseeds Growers Co-operative Union on a slump sale basis.
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