/Newsvoir/ – NINE MONTH CONSOLIDATED REVENUE OF Rs. 317,631 CRORE ($ 50.4 BILLION), DOWN 6.6%
NINE MONTH CONSOLIDATED PBDIT OF Rs. 34,004 CRORE ($ 5.4 BILLION), UP 5.4%
NINE MONTH CONSOLIDATED SEGMENT EBIT OF Rs. 20,854 CRORE ($ 3.3 BILLION), UP 13.4%
NINE MONTH CONSOLIDATED NET PROFIT OF Rs. 17,185 CRORE ($ 2.7 BILLION), UP 3.4%
QUARTERLY CONSOLIDATED NET PROFIT OF Rs. 5,256 CRORE ($ 834 MILLION), DOWN 4.5%
Reliance Industries Limited (RIL) today reported its financial performance for the quarter / nine months ended 31st December, 2014. Highlights of the un-audited financial results as compared to the previous year are:
HIGHLIGHTS OF QUARTER;S PERFORMANCE (CONSOLIDATED)
bull; Revenue (turnover) decreased by 20.4 % to Rs. 96,330 crore ($ 15.3 billion)
bull; PBDIT increased by 3.4 % to Rs. 11,109 crore ($ 1.8 billion)
bull; Profit Before Tax increased by 0.2 % to Rs. 7,018 crore ($ 1.1 billion)
bull; Cash Profit increased by 2.9 % to Rs. 8,541 crore ($ 1.4 billion)
bull; Net Profit decreased by 4.5 % to Rs. 5,256 crore ($ 834 million)
CORPORATE HIGHLIGHTS FOR THE QUARTER (3Q FY15)
In December 2014, RIL signed a shipping deal with one of the world largest and reputed shipping companies MITSUI O.S.K. LINES, LTD (MOL) for transporting Liquefied Ethane from North America to India. MOL will supervise the construction of six Very Large Ethane Carriers (VLECs), ordered by Reliance. MOL will also operate and manage the vessels after they are built and delivered. RIL, with this strategic tie-up with MOL, has achieved a key milestone for the successful implementation of Ethane import project to feed crackers in India.
In December 2014, RIL and Shandong Ruyi Science and Technology Group Co. Ltd, China (Ruyi) (through its wholly owned subsidiary), have executed definitive agreements for a joint venture in textile business. As per the definitive agreements, RIL will transfer its existing textile business into a newly incorporated company (JV), for which RIL will receive cash consideration. RIL will own a majority 51% in the proposed JV, with the balance 49% owned by Ruyi. The proposed transaction is subject to obtaining requisite approvals.
In December 2014, RIL and the Mexican State Owned Company, Petroleos Mexicanos (PEMEX) have entered into a Memorandum of Understanding (MOU). As per the MOU, RIL will cooperate with PEMEX for assessment of potential upstream oil and gas business opportunities in Mexico and jointly evaluate value added opportunities in International Markets.
In November 2014, Reliance Jio Infocomm Limited (RJIL), a subsidiary of RIL has signed a US$ 1.5 Billion Syndicated Term Loan facility aggregating to US$1.5 Billion (the Facility). The facility is guaranteed by RIL and will be used to refinance the syndicated term loan facilities aggregating to US$ 1.5 Billion tied up by RJIL in 2010.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited 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 the business cycle. During the quarter, Reliance Retail registered Y-o-Y growth of 19% in turnover with improved margins and profitability.
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED)
RIL achieved a turnover of Rs. 96,330 crore ($ 15.3 billion) for the quarter ended 31st December 2014, a decrease of 20.4%, as compared to Rs. 121,077 crore in the corresponding period of the previous year. Sharp Y-o-Y fall in benchmark oil price of 30% was the key factor for the decline in revenue. Exports from India were lower by 21.5% at Rs. 58,507 crore ($ 9.3 billion) as against Rs. 74,495 crore in the corresponding period of the previous year.
Cost of raw materials declined by 32.2% to Rs. 62,196 crore ($ 9.9 billion) from Rs. 91,740 crore on Y- o-Y basis. This was mainly on account of lower crude oil prices and lower blending and trading activity in the export markets.
Employee costs were at Rs. 1,548 crore ($ 246 million) as against Rs. 1,173 crore in corresponding period of the previous year.
Other expenditure increased by 17.2% on a Y-o-Y basis from Rs. 8,371 crore to Rs. 9,811 crore ($ 1.6 billion) primarily due to consolidation of Network 18 Media Investments Limited from current year.
Operating profit before other income and depreciation increased by 0.4 % on a Y-o-Y basis from Rs. 8,651 crore to Rs. 8,689 crore ($ 1.4 billion)
The quarter 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. While headline deltas were strong, declining feedstock prices impacted buying sentiment across product categories. Downstream converters ran down inventories, operating at minimal stock levels. 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. This coupled with lower holding value of closing-stock impacted performance of refining and petrochemicals businesses.
Other income was higher at Rs. 2,340 crore ($ 371 million) as against Rs. 2,076 crore in corresponding period of the previous year, primarily on account of higher profit on sale of investments.
Depreciation (including depletion and amortization) was higher by 6.4% to Rs. 2,954 crore ($ 469 million) as compared to Rs. 2,776 crore in corresponding period of the previous year.
Interest cost was at Rs. 1,137 crore ($ 180 million) as against Rs. 961 crore in corresponding period of the previous year. Interest cost was higher due to consolidation of Network 18 Media Investments Limited from current year and higher average exchange rate during the quarter.
Profit after tax was lower by 4.5% at Rs. 5,256 crore ($ 834 million) as against Rs. 5,502 crore in the corresponding period of the previous year.
Basic earnings per share (EPS) for the quarter ended 31st December 2014 was Rs. 17.8 as against Rs. 18.7 in the corresponding period of the previous year.
Outstanding debt as on 31st December 2014 was Rs. 150,007 crore ($ 23.8 billion) compared to Rs. 138,761 crore as on 31st March 2014.
Cash and cash equivalents as on 31st December 2014 were at Rs. 78,691 crore ($ 12.5 billion). These were in bank deposits, mutual funds, CDs and Government securities / bonds.
The capital expenditure for the nine months ended 31st December 2014 was Rs. 70,272 crore ($ 11.1 billion) 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.
RIL retained its domestic credit ratings of AAA from CRISIL and FITCH and an investment grade rating for its international debt from Moody as Baa2 and BBB+ from SP.
REFINING MARKETING BUSINESS:
3Q FY15 revenue from the Refining and Marketing segment decreased by 24.1% Y-o-Y to Rs. 81,777 crore ($ 13.0 billion). RIL gross refining margins (GRM) for the quarter stood at $ 7.3/bbl as against $ 7.6/bbl in the corresponding period of the previous year. EBIT for the quarter was up by 0.8 % Y-o-Y at Rs. 3,267 crore.
During the quarter, RIL Jamnagar refineries processed 17.7 MMT of crude at an average utilization of 114%. In comparison, average utilization rates for refineries globally during the same period were 86.8% in North America, 81.0% in Europe and 84.9% in Asia. The utilization rates were 85.2%, 74.6% and 84.0% respectively in the corresponding period of the previous year. Utilization rates improved in all regions on a Y-o-Y basis, due to healthy margins.
RIL exports of refined products from India was at $ 8.3 billion during the 3Q FY15 as compared to $ 10.8 billion in 3Q FY14. In terms of volume, exports of refined products were 11.9 MMT during 3Q FY15 as compared to 11.6 MMT in 3Q FY14.
The quarter was characterized by fall in crude prices, which fell by around 40% through the quarter. Continuous non-OPEC crude oil production growth, led by US, partial return of Libyan barrels, muted oil demand growth resulted in an oversupplied crude market leading to a sharp decline in crude oil prices.
Singapore complex refining margin strengthened on Y-o-Y basis, to $6.3/bbl compared to $5.4/bbl in the same quarter last year, primarily due to strength in gasoline and fuel oil. On a Q-o-Q basis, Singapore GRM improved $1.5/bbl, from $4.8/bbl in 2Q FY15, due to stronger middle distillates and fuel oil cracks.
Singapore Gasoil cracks averaged $ 16.0/bbl during the quarter as against $17.7/bbl during the same period last year and $14.4/bbl in the previous quarter. Cracks performed better on Q-o-Q due to improvement in Chinese and Indian demand coupled with some unplanned outages. Indian demand increased by 11% on Q-o-Q basis on the back of reduced retail prices.
Asian Naphtha cracks were down at $-5.1/bbl as compared to same period last year as well as compared to the previous quarter. Naphtha cracks tumbled on muted demand coupled with large inflows from West even though falling crude prices and petrochemicals demand provided support in the latter part of the quarter. Gasoline cracks were better on a Y-o-Y and Q-o-Q basis. On a Q-o-Q basis, gasoline cracks performed well on unplanned outages in the earlier part of the quarter, but softened subsequently.
Fuel oil cracks strengthened significantly to $-7.2/bbl as compared to $-10.5/bbl in the previous quarter. Falling outright prices led to increased demand supported by improvement in bunker sales and fear of supply disruption due to bankruptcy of major European fuel oil supplier. However, lower demand from Chinese teakettle refineries checked the gains.
During the quarter, Arab Light ndash; Arab Heavy crude differential were at $4.0/bbl, differentials narrowed by $ 0.60/bbl on a Y-o-Y basis and $ 0.80/bbl on Q-o-Q basis. Strengthening of fuel oil margins supported heavy crude and softness in light distillates led to the weakness in light barrels, thus narrowing the differentials as compared to the previous quarter.
PETROCHEMICALS BUSINESS
3Q FY15 revenue from the Petrochemicals segment declined by 15.2% on Y-o-Y basis to Rs. 23,001 crore ($ 3.6 billion) due to lower feedstock and product prices. EBIT for the quarter declined by 2.4% at Rs. 2,064 crore on Y-o-Y basis. EBIT margin improved to 9.0% for the quarter as compared to 7.8% in 3Q FY14. Improvement in EBIT margins were aided by firm polymer and polyester deltas.
Polymer Cracker Sector:
Naphtha prices in Asia continued to decline due to ample supply and drop in crude oil prices. Also, naphtha demand for olefins production in Asia was lower with soft downstream derivatives demand.
On Q-o-Q basis ethylene prices were down by 17% and lagged the decline in feedstock naphtha prices which was down 31% during the same period. At the beginning of the quarter supply of ethylene was tight with ongoing turnaround schedule, however with supply coming back the region was long ethylene by the end of the quarter but still the price drop lower than the naphtha. This resulted in ethylene spreads continuing at all-time high levels. Polymer prices were also lower during the quarter due to soft demand and falling upstream values.
During 9M FY15, Indian polymer demand was higher by 5.2%. PP demand grew 5.3% Y-o-Y with improved demand from raffia packaging, non-woven, multi filament, automotive and appliances sector. PE demand was higher by 5.0% due to good demand from film packaging, moulded products (i.e. FMCG, Pharma and Food packaging), and paper/woven sacks lamination packaging sector. PVC domestic demand was higher by 5.4% with higher demand from pipe and fitting sector.
Polymer deltas remained healthy with product price decline lagging the fall in feedstock prices. On Q-o-Q basis, PP deltas improved sharply by 45% as propylene prices continue to fall due to oversupply in Asia. PE delta also remained firm (up 19%) on Q-o-Q basis as naphtha prices tracked falling crude oil price. PVC deltas were stable as PVC prices were down in line with feedstock EDC and ethylene prices.
For the quarter, RIL polymer production was lower at 1.0 MMT due to planned turnaround at Hazira. RIL continues to maintain its leadership position in the domestic market.
Elastomer
Sharp decline in crude prices and continued soft demand for synthetic rubber, coupled with new capacities led to Butadiene prices touching a new low in FY15. High operating rates of naphtha crackers ensured abundant availability of Butadiene feedstock, further accentuating the price decline.
PBR prices dropped 13% on Q-o-Q basis due to weak market conditions. However, PBR deltas improved on Q-o-Q basis as Butadiene prices fell more sharply. After start-up of new PBR capacity at Hazira, RIL is expected to increase its domestic market share as substantial portion of production from new line will be placed in the domestic market. Reliance is the only producer of PBR in India.
RIL is ramping up operations of its new 150 KTA capacity SBR plant at Hazira, which is the largest in India. The plant has capability to produce entire range of dry as well as oil extended grades of emulsion SBR. India is a net importer of SBR and with RIL new capacity, India will be self-sufficient in SBR. With this, RIL has reaffirmed its leadership position in synthetic rubbers in the Indian market.
Polyester Chain
PX markets sentiments remained subdued due to upstream price declines. PX prices were lower by 25% on a Q-o-Q basis. PX contract prices were settled only twice during the last twelve months, in Jan;14 and Oct;14. PX margins declined 17% on Q-o-Q and 25% on Y-o-Y basis. Oversupply caused by new capacities coupled with cautious buying from PTA producers, resulted in significantly weaker deltas.
PTA markets continued to remain oversupplied. Demand was weak initially during the quarter, but improved subsequently with demand from polyester sector aided by better downstream margins. Along with shutdowns and controlled Chinese production, margin decline was contained at 6% Q-o-Q.
MEG markets were largely guided by the upstream markets and co-feedstock PTA demand patterns. Prices declined 15% on a Q-o-Q basis. Chinese port inventories declined towards the end of the quarter, which helped stem the price drop. As a result, MEG margins improved 8% on a Q-o-Q basis.
Polyester Yarn markets witnessed price drops reflecting the feedstock trends, but lower prices supported a revival in demand. Inventory levels remained low across the chain which helped producer margins. Polyester margins were at the highest levels in nearly 2 years. Despite high margins, the falling market environment affected sentiment. Demand from USA largely remained healthy in most sectors favouring imports into the country. Polyester staple fibre markets were healthy. The delta between cotton and polyester staple fibre declined during the quarter, but is still above the long term average and tends to be favourable for polyester consumption. PET markets remained stable during the quarter. Despite a 14% decline in prices Q-o-Q, margins increased 60% with falling intermediate prices.
Stocks with downstream players in the domestic market remain very thin and any revival or stabilization in feedstock prices would spur demand growth.
For the 9M FY15 period, overall polyester demand increased by 4% on a Y-o-Y basis. The growth has been led by PFY (primarily FDY) and PET.
Ramp-up of the new PET plant a Dahej is expected to synchronize with the start-up of new PTA facility during 4Q FY15. Polyester production increased by 13% Y-o-Y to 451 KT with ramp-up in production from the new Silvassa facility. Fibre intermediates production remained flat at 1.2 MMT during the quarter. MEG production was impacted due to planned shut down and product optimization during 3Q FY15.
OIL AND GAS (EXPLORATION PRODUCTION) BUSINESS
DOMESTIC OPERATIONS
Natural gas pricing policy was notified and implemented by the Government of India during the quarter. New gas price of $ 5.05/MMBTU on gross calorific value (GCV) basis, is applicable for the period from 1st November 2014 to 31st March 2015. The gas price will be revised on a half yearly basis.
KG-D6
Production Update:
KG-D6 field produced 0.5 million barrels of crude oil, 0.1 million barrels of condensate and 38.5 BCF of natural gas in 3Q FY15. Fall in gas production is mainly due to natural decline in the fields partly offset by incremental production from new well MA08 and side track in well MA6H which was implemented in 2H FY14.
Key Project Update:
Appraisal of D55 discovery: Drilling of third appraisal well MJ-A3 was completed in 3Q FY15.The well encountered hydrocarbon at the zone of interest. Actual hydrocarbon zone encountered was thinner than expected. The impact analysis on overall resources is currently underway.
MA/D1-D3 Enhanced Gas Recovery activities: Drilling of Side track well in MA5H is currently underway. All the construction work related to booster compressor at the onshore terminal has been completed. 2 compressors are likely to be commissioned in 4Q FY15 and the third compressor is expected to be commissioned by mid-2015.
Panna Mukta and Tapti
Production update:
Panna-Mukta fields produced 1.8 million barrels of crude oil a reduction of 12% on Y-o-Y basis and 18.5 BCF of natural gas, a growth of 8% on Y-o-Y basis in 3Q FY15. The increase in gas production was on account of (i) Infrastructure modification facilitating processing of more gas, (ii) Additional volumes from revival of shut-in wells and improved performance from new wells including infills drilled during 2H FY14.
Tapti fields produced 0.05 million barrels of oil and 3.0 BCF of natural gas in 3Q FY15 ndash; reduction of 29% and 53% respectively on Y-o-Y basis. The cessation of production from this block is likely to occur in early FY16.
CBM
Significant progress made in the Phase 1 of development activities in two CBM blocks, Sohagpur East and Sohagpur West for achieving first gas by mid FY16.
The Phase-1 comprises of drilling and completion of more than 200 wells, 2 Gas Gathering Station and 8 Water Gathering Stations with associated pipelines.
70% of the Phase-1 scope completed.
Land acquisition for wells sites and facilities are progressing as per plan.
4 Rigs are in operation performing multiple operations.
Completed drilling of 151 surface holes, 131 production holes and performed 100 Hydro- fracturing jobs.
Construction activities are in advance stage.
Shahdol-Phulpur Gas pipeline project:
Front End Engineering Design (FEED), detailed engineering and ordering for all long lead items completed.
All construction contracts have been awarded.
Other Portfolios
As Gas discoveries and prospects size were small and scattered, RIL has relinquished the Block KG-DWN-2003/1 during 3Q FY15.
Other than KG-D6, Panna-Mukta Tapti and 2 CBM blocks, RIL India portfolio comprise of 4 blocks. In the international portfolio, RIL has 3 blocks ndash; 2 in Yemen (Block 34 37) and 1 in Peru (Block 39).
RIL and Myanmar Oil and Gas Enterprise (MOGE) are expected to sign PSC with respect to Myanmar blocks M17 and M18 in 4Q FY15.
Oil Gas (US Shale)
Note: 3Q/9M CY14 financials for US Shale are consolidated in 3Q/9M FY15 results as per accounting standards
Review of US Shale Operations ndash; (3Q FY15)
During 3Q FY15, the Shale Gas business witnessed macro headwinds, with a sharp downturn in commodity prices, especially in case of oil. WTI dropped down 40% from $90/bbl at the beginning of the quarter to $53/bbl by the end of the quarter. The fall was more prominent towards the quarter end. Natural Gas spot prices too dropped by over 24% during the quarter to end at $3.14/MMBTU, with a significant part of the decline witnessed during the month of Dec;14. NGL prices averaged around 32.5% of WTI. Gas differentials remained high and continue to be a key challenge, especially in the NE region.
Operationally, the business continued its strong performance, with production at record levels, especially at Pioneer and Chevron JVs. Gross JV production averaged at ~1.25 Bcfe/day, reflecting growth of 5% Q-o-Q and 21% over 3Q FY14. Development growth momentum remained strong and well performance continues to be encouraging. Value creation initiatives progressed well across all our JVs.
Pioneer JV gross production averaged at 725 Mmcfe/d, including ~69,300 bbl/d of condensate reflecting a 3% growth over the previous quarter. Production at Chevron JV continued on its growth trajectory at 366 Mmcfe/d, a 6% growth sequentially. At Carrizo JV, market conditions forced temporary curtailment in production early in the quarter, but supportive weather and decision to flow wells at an operationally optimal level, led to 10% sequential increase in production rates to 157 Mmcfe/d during the quarter.
With impact of stronger volumes offset by sharply lower realization, overall revenues and EBITDA for the quarter were sequentially lower by 16% and 14% respectively.
Eagle Ford shale remains one of the most competitive liquid shale plays in the US and is better positioned to remain competitive even in a volatile price environment. Pioneer JV continued with implementation of better completion technologies which has demonstrated improved well performance. Similarly, down spacing efforts have been progressing well and improving the potential well count for the JV. This improved efficiency greatly helps managing the depressed oil price environment.
Overall capex for the quarter was at $264 million and cumulative investment across all JVs stood at $7.9 billion. During the quarter Pioneer and Carrizo JV capex were met through cash from respective JV operations.
Several other ongoing value creation initiatives were progressed further in this quarter. Pioneer JV successfully decreased DC costs through initiatives like use of 2-string casing design and efficient pad operations. Chevron JV has realized some well cost improvements, but significant more scale and consistency is needed for overall competitive capital efficiency. All three JVs are actively pursuing opex and capex reduction initiatives in the current commodity price downturn.
Reliance shale gas remains focused on high-grading of development activities, improving costs and efficiencies and managing the low price environment through prioritizing well capex in the most prolific areas. The business has reached an overall development maturity, (with a significant part of the acreages Held By Production) and adequate investment flexibility is available going forward mode.
ORGANIZED RETAIL
Reliance Retail continued its growth momentum in 3Q FY15 despite challenging macroeconomic environment. Turnover for the quarter grew 19% on Y-o-Y basis to Rs. 4,686 crore.
The business recorded a strong like-for-like growth of up to 19% across format sectors in the quarter aided by festive shopping and saw Reliance Retail post its highest ever PBDIT in a quarter of Rs. 227 crore, an increase of 114% on a Y-o-Y basis.
Reliance Retail saw net addition of 279 stores during the quarter accelerating the pace of store opening to over 3 stores a day.
The Value formats added 15 new Reliance Fresh stores to its network in the quarter and further consolidated its position as the largest grocery retailer in the country. Strong private label offering continued to attract consumers thereby becoming a favored option against established national brands. Reliance Fresh Direct, home delivery of fresh grocery currently being piloted in a limited territory is showing encouraging response.
Reliance Market continued to expand and further consolidate its position as the largest Cash and Carry operator in the country. Reliance Market continued additions to its store network, reaching out to more and more kiranas, traders and institutions as partners across the country. Reliance Market serves over 1.5 million registered members.
Digital format sector kept up the pace of expansion through Digital Xpress Mini, a format that is positioned towards serving communication and mobility needs. In a short period, the format has established itself as the largest mobile phone retail chain in the country. During the quarter, the sector added 231 stores taking the total store count of the sector to 920.
The Fashion Lifestyle sector witnessed strong growth during the quarter owing to a relentless focus on providing customers with fashionable, high quality products at great value. During this period, Reliance Trends crossed the milestone of operating stores in over 100 cities thereby extending their reach to fashion seeking customers.
Reliance Retail grew its presence through its partnerships during this period. Its partnerships with Marks and Spencer and Grand Vision continued expansion and witnessed strong sales growth from existing stores. Reliance Brands partnered with ABG Juicy Couture, LLC for a Distribution Agreement for the Brand, Juicy Couture in India.
Reliance Retail now operates 2,285 stores across the country.
BROADBAND ACCESS
RIL subsidiary, Reliance Jio Infocomm Limited (RJIL), which is the only private player with Broadband Wireless Access spectrum in all the 22 telecom circles of India, plans to provide reliable fast internet connectivity and rich digital services on a Pan India basis.
In addition to fixed and wireless broadband connectivity, RJIL also plans to enable end-to-end solutions that address the entire value chain across various digital services in key domains of national interest such as education, healthcare, security, financial services, government-citizen interfaces and entertainment. RJIL aims to comprehensively address the requisite components of the customer need, thereby fundamentally enhancing the opportunity and experience of hundreds of millions of Indian citizens and organizations. Engaged in this massive endeavour, over 10,000 full time Jio employees are working alongside nearly 30,000 professionals from our partners and vendors from all parts of the world. In addition, there are over 100,000 people working across the country in creating the digital infrastructure backbone for this network. The key leadership positions required to execute the project are in place. RJIL has finalized the key vendor and supplier partnerships that are required for the launch of our services, and is making rapid progress in building the critical infrastructure needed to launch its services.
In the past, Reliance Jio has signed agreements with the following:
An agreement with Indus Towers for more than 113,490 towers across 15 telecom circles in India. (Sept 2014)
An agreement with GTL Infra for more than 27,800 towers across India. (Sept 2014)
An agreement with Ascend Telecom for their more than 4,500 towers across India. (June 2014)
An agreement with Tower Vision for their 8,400 towers across India. (May 2014)
An agreement with ATC India for their 11,000 towers across India. (April 2014)
An agreement with Viom Networks for their 42,000 telecom towers. (March 2014)
An agreement with Bharti Infratel for their 36,000 telecom towers. (March 2014)
Agreement with Bharti Airtel for a comprehensive telecom infrastructure sharing agreement to share infrastructure created by both parties to avoid duplication of infrastructure wherever possible. (December 2013)
A key agreement for international data connectivity with Bharti to utilise dedicated fiber pair of Bharti i2i submarine cable that connects India and Singapore. (April 2013)
Agreements with Reliance Communications Limited for sharing of RCOM extensive intercity and intra-city optic fiber infrastructure of nearly 1,20,000 fiber-pair kilometers of optic fiber and 500,000 fiber pair kilometers respectively (April 2013 / April 2014), and 45,000 towers (June 2013).
Reliance Industries Limited acquisition of control in Network 18 Media Investments Limited through Independent Media Trust including its subsidiary TV18 Broadcast Limited will differentiate Reliance 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties.
Notes:
1. The figures for the corresponding previous periods have been reworked/regrouped wherever necessary, to make them comparable.
2. The consolidated accounts have been prepared as per Accounting Standard (AS) 21 on Consolidated Financial Statements and Accounting Standard (AS) 23 on Accounting for Investments in Associates in Consolidated Financial Statements.
3. The paid up Equity Share Capital in item no 13 of the above result, includes 29,23,54,627 equity shares directly held by subsidiaries/trust before their becoming subsidiaries of the Company, which have been excluded for the purpose of computation of Earnings per share.
4. The Government of India (GoI), by its letters dated 2nd May, 2012, 14th November, 2013 and 10th July, 2014 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to GoI for resolution of disputes.
5. In July 2014, RIL has completed the acquisition of control of Network 18 Media and Investments Limited (NW18) including its subsidiary TV18 Broadcast Limited (TV18).
6. Pursuant to the enactment of the Companies Act 2013 (the Act), the Company has, effective 1st April 2014, reviewed and revised the estimated useful lives of its fixed assets, generally in accordance with the provisions of Schedule II to the Act. The consequential impact (after considering the transition provision specified in Schedule II) on the depreciation charged and on the results for the quarter is not material.
7. Based on alternate interpretation for calculation of diluted EPS as per Accounting Standard (AS) 20 the diluted EPS for the quarter ending Dec 14, Sep 14 Dec 13, Nine month ending Dec 14 Dec 13 and Year ended Mar 14 are Rs. 17.8, Rs. 20.2, Rs. 18.7, Rs. 58.3, Rs. 56.4 and Rs. 76.4 respectively.
8. There were no investor complaints pending as on 1st October 2014. All the 646 complaints received during the quarter ended 31st December 2014 were resolved and no complaints were outstanding as on 31st December 2014.
9. The Audit Committee has reviewed the above results and the Board of Directors have approved the above results and its release at their respective meetings held on 16th January 2015. The Statutory Auditors of the Company have carried out a Limited Review only for the Quarter/ Nine Months Ended 31st December 2014 and the Quarter Ende 30th September 2014.
Notes to Segment Information (Consolidated) for the Quarter/ Nine Months Ended 31st December 2014
1. As per Accounting Standard 17 on Segment Reporting (AS 17), the Company has reported Segment Information, as described below:
a) The petrochemicals segment includes production and marketing operations of petrochemical products namely, High density Polyethylene, Low density Polyethylene, Linear Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear Alkyl Benzene, Butadiene, Acrylonitrile, Poly Butadiene Rubber, Caustic Soda and Polyethylene Terephthalate.
b) The refining segment includes production and marketing operations of the petroleum products.
c) The oil and gas segment includes exploration, development and production of crude oil and natural gas.
d) The organized retail segment includes organized retail business in India.
e) Other business segments including broadband access media which are not separately reportable have been grouped under the others segment.
f) Capital employed on other investments / assets and income from the same are considered under unallocable;.
Notes:
1. The figures for the corresponding previous periods have been reworked/regrouped wherever necessary, to make them comparable.
2. The Government of India (GoI), by its letters dated 2nd May, 2012, 14th November, 2013 and 10th July, 2014 has communicated that it proposes to disallow certain costs which the Production Sharing Contract (PSC), relating to Block KG-DWN-98/3 entitles the Company to recover. Based on legal advice received, the Company continues to maintain that a Contractor is entitled to recover all of its costs under the terms of the PSC and there are no provisions that entitle the Government to disallow the recovery of any Contract Cost as defined in the PSC. The Company has already referred the issue to arbitration and already communicated the same to GoI for resolution of disputes.
3. Pursuant to the enactment of the Companies Act 2013 (the Act), the Company has, effective 1st April 2014, reviewe and revised the estimated useful lives of its fixed assets, generally in accordance with the provisions of Schedule II to the Act. The consequential impact (after considering the transition provision specified in Schedule II) on the depreciation charged and on the results for the quarter is not material.
4. Based on alternate interpretation for calculation of diluted EPS as per Accounting Standard (AS) 20 the diluted EPS for the quarter ending Dec 14, Sep 14 Dec 13, Nine month ending Dec 14 Dec 13 and Year ended Mar 14 are Rs. 15.7, Rs. 17.7, Rs. 17.0, Rs. 50.8, Rs. 50.5 and Rs. 67.9 respectively.
5. There were no investor complaints pending as on 1st October 2014. All the 646 complaints received during the quarter ended 31st December 2014 were resolved and no complaints were outstanding as on 31st December 2014.
6. The Audit Committee has reviewed the above results and the Board of Directors have approved the above results and its release at their respective meetings held on 16th January 2015. The Statutory Auditors of the Company have carried out a Limited Review of the aforesaid results.
Notes to Segment Information (Standalone) for the Quarter/ Nine Months Ended 31st December 2014
1. As per Accounting Standard 17 on Segment Reporting; (AS 17), the Company has reported Segment Information;, as described below:
a) The petrochemicals segment includes production and marketing operations of petrochemical products namely, High density Polyethylene, Low density Polyethylene, Linear Low density Polyethylene, Polypropylene, Polyvinyl Chloride, Polyester Yarn, Polyester Fibres, Purified Terephthalic Acid, Paraxylene, Ethylene Glycol, Olefins, Aromatics, Linear Alkyl Benzene, Butadiene, Acrylonitrile, Poly Butadiene Rubber, Caustic Soda and Polyethylene Terephthalate.
b) The refining segment includes production and marketing operations of the petroleum products.
c) The oil and gas segment includes exploration, development and production of crude oil and natural gas.
d) The smaller business segments not separately reportable have been grouped under the others segment.
e) Capital employed on other investments / assets and income from the same are considered under unallocable.
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