Archive for October, 2011

Chronicle Of Reliance Industries Limited’s Half-Year Financial Performance

October 18, 2011

Reliance Industries Limited has declaredits financial performance for the half year ending 30th September, 2011. The summary of the comparative study of theun-audited financial results is enlisted here.

RIL’s turnover has increased by 36.0%, exports by 52.2%, PBDIT by 9.0% and Profit before tax has increased by 19.6%. The cash profit witnessed an increase to Rs.17, 828 crore and the net profit to Rs. 11,364 crore. Employee costs were at Rs. 1,593 crore for the half year, as compared to the corresponding period previous year, which was Rs. 1,277 crore. Earnings Per Share increased from Rs.29.9 (previous year) to Rs.34.7. The net capex towards all projects stood at Rs. 6,691 crore and the cash outflow amounted to Rs. 3,533 crore.

The first well drilled in the CYPR-D6 block,located in Cauvery-Palar basin led to the discovery of rich gas and condensate. This is one of the exploration blocks where BP has acquired 30% stake. There was reduction in production of crude oil from KG-D6 block, due to reservoir complexity. However, the production of gas condensate has increased by 26.3%, compared to the previous period.

On a year-on-year basis, the Panna-Muktacontributed to a 63% increase in gas production and 39% in oil production. However, production of natural gas and condensatedeclined by 22.8% and 25.5% respectively from Tapti, due to a natural decline. RIL’s petrochemical business has the highest ever half-yearly EBIT.

Reliance Retail’s vision is ‘bettering the lives of Indians everyday’. Its newest format for the second quarter is ‘Reliance Market’, which will be a preferred sourcing destination for business and trading community. The first Reliance Market Store has been launched at Ahmedabad. Reliance Retail has marked its presence in 100 cities in India, with more than 1,100 stores in operation.

One of RIL’s subsidiaries, Infotel Broadband Services Limited, is in the process of setting up a world class Broadband Wireless Network using state-of-art technologies. They intend to finalize the arrangement with leading global technology players, service providers, infrastructure providers, device manufacturers and others, to pave way for 4G revolution in India.

Mukesh D Ambani, Chairman and Managing Director of RIL, commented on the report saying,” Our first half financial performance has been consistent. The increase in profits was largely driven by improved performance in the refining and petrochemicals business. All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110%. RIL has strong balance sheet and sustained earning base to pursue growth opportunities.”

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Mukesh Ambani led RIL to ink deal with UTV – Walt Disney, India

October 10, 2011

The latest in the series of multiple deals being signed by Reliance Industries, Mukesh Ambani led conglomerate Reliance Industries Limited (RIL), is set to strike a new deal with Walt Disney – India in an effort to acquire content for its upcoming telecom operations. The deal will be sealed between Reliance Industries and UTV Software, a subsidiary of UTV in which Walt Disney holds 50.44 per cent stake.

Known to be a pioneer in India’s core industry sectors – including energy, refining, and synthetic fibers – Reliance Industries has switched gears to expand its scope and scale to commercial and wide-spaced services, such as retail, financial services and more significantly telecom and broadband services. After successfully acquiring Infotel Broadband services, the only firm to secure nationwide wireless broadband radio airwaves (in 22 circles) in an auction conducted for Broadband Wireless Access (BWA) Spectrum conducted by the DoT, RIL plans to roll out top-of-the-line telecom services in India. It plans to build a data-focused business which will provide mobile, smartphone, tablet and computer users access to the internet related services via a wireless broadband network. Through this latest deal, Mukesh Ambani led RIL stands to gain access to games, entertainment and children’s content for their budding telecom operations, especially for its 4G platform. The deal with UTV, soon to be acquired fully by Walt Disney, will help RIL propel its plans of rolling out data-focused business sooner than anticipated.

Reliance, in a season of new acquisitions and deals, has laid out plans to incorporate one more partner in its endeavor to establish holistic partnerships with leading business players. After a successful innings, which saw Reliance ink deals with global majors – including London based energy giant BP PLc, followed by an equally prolific deal with hedge fund institution DE Shaw, and acquisition of assets in shale gas sector, mineral sector and others, RIL will be seen broadening the scope of its gradually developing telecom unit.

RIL-BP JV appoints Hiten Mehta as its CEO

October 3, 2011

The $7.2 billion joint venture between Mukesh Ambani led Reliance Industries Limited (RIL) and London based energy giant BP PLc has appointed a new chief operating officer for their new-fangledestablishment. Hiten Mehta, the person in charge of BP’s upstream gas project at Anchorage, Alaska has been roped in to lead the joint venture between two of the world’s leading energy based corporations as its new CEO. Hiten Mehta has already come down to Mumbai to take charge of the fast developing venture.

So far, 44 people have been selected to be a part of RIL-BP joint venture. BP’s CEO, Bob Dudley has handpicked executives from BP’s teams placed across the world, while some have been hired from Non-BP projects. The JV will also see strong memberships from Indian subcontinent, selected by Reliance Industries. Five top personnel team, headed by RIL executive director PMS Prasad and BP India’s country head SashiMukundan, are working out the master plan for the JV that is expected to ignite its function in next few months. The primary target that the JV members will look to tackle is to bring up the production from KG-D6 block, India’s most prolific gas block discovery, to 80 mmscmd mark, as lately the block as seen a steady decline in its production level. It will look to develop satellite fields in the vicinity of the block, which can help ramp up the output substantially. Thereafter, the team will chart plans to develop a gas sourcing, distribution and marketing platform in the country. The joint venture in the long run will look to target global markets for expansion of its business. For now, the focal point of all actions is directed towards India and creating value for India.

Also, both RIL and BP are brainstorming over the name for their JV. They will unveil the JV’s name shortly and it is anticipated that the name will be unique and may not have RIL-BP in it. It expected to be an exclusive brand in its self.