MUMBAI: The country’s oil, gas and petrochemicals giant Reliance Industries sprung a positive surprise for the market with its earnings
The company reported a net profit of Rs 4008 crore, up 14.48 per cent from Rs 3501 crore in the corresponding period a year ago. The standalone net sales grew to Rs 56,856 crore for the quarter ended on Dec 31, 2009 from Rs 31,563 crore in the same quarter previous year.
During the quarter, the revenue from petrochemicals business rose 17 per cent year-on-year to Rs 14,756 crore and gross refining margins were recorded at $5.9 per barrel. Meanwhile, its Q3 refining revenues soared 143 per cent.
PN Vijay of askpnvijay.com was of the opinion that Reliance’s performance in Q3 has been a great relief for the market which has currently been wilting under global weakness. “If RIL Q3 would have fallen short of expectations, then the market would have been beaten down severely. Given that the GRMs held intact, it just signals bullishness in the petchem business.”
Rohit Nagraj, research analyst at Prabhudas Lilladher said that the brokerage will maintain status quo on its ratings on Reliance Industries. Nagraj added, “But the major surprise came in from the GRMs front. We were expecting the company to record $5.3/bbl, however, the figures came in at $ 5.9/bbl. Given the revival in refining business is a positive sign going forward.”
Furthermore, Nagraj said that Prabhudas Lilladher has forecast Reliance’s GRMs for Q4 at $6/bbl. However, he added that given the strong GRMs this quarter and if the current trend continues, further upside is expected.
Commenting on the gross refining margins, Victor Shum, senior principal, Purvin & Getz said, “Some more recovery is likely for refining margins. However, it remains a touch environment for GRMs for the remainder of this year. But Reliance Industries is in a very competitive position and will be able to maintain GRMs as compared to the rest of the industry.”
Giving a technical call on the stock, Rohit Shinde, associate vice president at CD Equisearch said, “The key resistance for the stock lies at Rs 1150. Reliance Industries, for the last couple of sessions, has not been able to sustain above 1150. Stochastics have given a breakdown which is a negative sign for the stock. However, the bounceback witnessed today on the back of strong results may not hold. Some amount of volatility is expected towards the later half of the session which is an ideal opportunity for shorting the market.
The company’s shares recovered from the day’s low post the earnings declaration. The stock was trading at Rs 1057.80, higher by 0.36 per cent on the NSE, easing from a low of Rs 1029.50.
RIL beats street, Q3 net profit up 14.5% to Rs 4,008 cr
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Bharti Q3 net up 2.4%, beats forecast
NEW DELHI: Bharti Airtel Ltd, India's top mobile operator, reported a small rise in quarterly profit growth, broadly in line with expectations,
India, the world's fastest-growing mobile services market, is signing up over 14 million users a month, but competition is getting fiercer as new entrants slash call rates to grab subscribers.
Global players such as NTT DoCoMo and Telenor are pushing down call rates to as low as 0.7 U.S. cents a minute as they seek a foothold in a market expected to double to 1 billion users by 2014.
New Delhi-based Bharti, in which Southeast Asia's top phone firm SingTel owns more than 30 percent, continues to focus on robust market share despite the "hyper competition" in the market, Chairman Sunil Mittal said in a statement.
Bharti said net profit rose 2 percent to 22.10 billion rupees ($478 million) under U.S. accounting rules in its fiscal third quarter ended December from 21.59 billion a year ago.
Revenue rose 1 percent to 97.72 billion rupees from 96.33 billion. A Reuters poll of 12 brokerages had forecast a fall in net profit to 20.96 billion rupees on revenue of 97.10 billion.
Bharti added 8.4 million mobile users in the quarter to reach a total of 119 million by end-December.
Shares in Bharti, valued at about $27 billion, rose as much as 2.4 percent soon after the earnings in a weak Mumbai market. By 0410 GMT, the stock was up 1.3 percent at 326.20 rupees while the benchmark was down 2 percent.
Average revenue per user fell 29 percent to 230 rupees in the December quarter from a year ago as more than half of new users came from rural areas, where spending is lower, and average minutes of usage also fell 12 percent to 446 minutes.
Bharti shares fell 21 percent in Oct-Dec underperforming the broader market that rose 2 percent. Bharti and rival Reliance Communications were the only two stocks that fell in 2009 in the main index, which jumped 81 percent.
Shares in Bharti Airtel rose more than 2 per cent, after it reported a 2.4 percent rise in quarterly profit, beating forecasts. Shares rose to 329.80 rupees, up 2.4 percent, after having been down 2.2 percent earlier.
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Three months ending December 31 (versus the same period a year earlier)
Net profit 11.4 vs 9.0
Net sales 45.3 vs 38.3
NOTE: ITC Ltd, 31.7 per cent owned by British American Tobacco, is India's top cigarette maker. It also makes consumer goods and runs hotels. The figures are standalone.
Thomson One Estimates forecast net profit at Rs 10.78 billion.
ITC Q3 net profit up 26.7% at Rs 1,144.17cr
Src: ET and Moneycontrol etc
ITC Q3 net profit up 26.7% at Rs 1,144.17cr
Src: ET and Moneycontrol etc
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