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Reliance Results: EPS down 11.9%

4 comments Written on January 22nd, 2009 by
Categories: Reliance
Reliance Industries announced results today. Q3 EPS is down 11.9% from 26.7 to 23.5. Revenue down 10% at 3156 cr. Profit sits in at 3501 cr., not directly comparable to Q3 FY08 due to the RPL stake sale that bumped up profits by 4300 cr. EPS has also been impacted by Mukesh Ambani's conversion of 12 crore warrants into shares, for which he's paid a whopping 16,800 cr.

RIL Q3 Profits would've been lower by 1177 cr. if forex calculations reflected AS11, which Reliance has steadfastly refused to follow. That's like 1/3rd the net profit of the quarter. Candidate, surely, to add into the SoS, but I'll wait till tomorrow - after all, results were announced post trading hours so it wouldn't be fair.

Overall, quite disappointing and this must do horrible things to the Nifty EPS. We have been at 228 or so all of 2008, and starting 2009 we are going to see earnings drop - not one estimate I've seen includes that possibility, yet. The times, they are a-changing.

The stock was flat today at 1,135.

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This entry was posted on Thursday, January 22nd, 2009 at 12:37 PM and is filed under Reliance. You can subscribe to any comments to this entry via RSS 2.0. You can leave a response, or trackback from your own site.

About the Author: Deepak Shenoy
http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company in Gurgaon. He also provides data research and consulting services in the financial markets space. Connect with him at deepakshenoy@gmail.com.

4 comments “Reliance Results: EPS down 11.9%”

>Reliance why not profit this time??? Satyam you did it.Well tomorrow we might see reliance impact in the market. Expected is gap up opening and fall later. Please note Still US market will play major role.

Sharetipsinfo
01.22.09 at 1:40 PM
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>why in this world CNBC is doing bullshit in this world. Why they’re saying that short covering should come in RIL shares.Why these guys are saying this? CNBC has been speaking as if RIL has outperformed the market. I think SEBI should take action against CNBC.

Guruprasad
01.22.09 at 5:22 PM
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>1177 Cr is for 9 months not just for this quarter.

Anonymous
01.23.09 at 6:07 AM
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>Doesn’t matter – it’s a cumulative figure that would impact them THIS quarter unless they restated results of all past quarters. Btw, it’s 1147 cr. since April 2007.

Effectively it’s a Rs. 10 hit to EPS that is not accounted for…on an annual basis that’s about 10% of profits.

Deepak Shenoy
01.23.09 at 6:18 AM
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