Reliance Industries (RIL) today reported a consolidated net profit of Rs 15,296 crore for the year ended March 31, 2009.

The net turnover of the company stood at Rs 1,51,224 crore for the year ended March 31, 2009, whereas it was Rs 1,37,147 crore a year-ago.

RIL has also proposed a dividend of Rs 13 per fully paid-up equity shares of Rs 10 each aggregating to Rs 2,219 crore, including the dividend distribution tax, the filing added.

The board has considered dividend on the shares issued to the shareholders erstwhile RPL as well.

Shares of RIL closed down 1.57 per cent at Rs 2,099 on the Bombay Stock Exchange.

Reliance Industries Limited has informed BSE that the Board of Directors of the Company at its meeting held on October 07, 2009, has recommended, subject to the approval of the shareholders, issue of Bonus shares in the ratio of one equity share of Rs 10/- each fully paid up for every one equity share of Rs 10/- each of the company.

RIL, the India’s largest private company has recommended issuing bonus shares after 12 years. The last time it issued 1:1 bonus was on September 13, 1997.

Further, the Board has declared a dividend of Rs 13 (Rupees thirteen only) per fully paid-up equity share of Rs 10/- each.

Mukesh Ambani-led Reliance Industries (RIL) recorded an 11.53 per cent decline in its net profit at Rs 3,636 crore for the first quarter ended June 30, 2009 as compared to Rs 4,110 crore which was way below estimation.

Standalone net sales slipped 22.9% to Rs 32,055 crore versus Rs 41,579 crore year-on-year. Earning before interest, tax, depreciation and amortization fell 3.3% to Rs 5,921 crore from Rs 6,121 crore. Operating profit stood at Rs 4,293 crore and standalone petchem revenues declined 22.4% to Rs 11,540 crore from Rs 14,871 crore last year.Gross refining margins have come in at USD 7.5 per barrel as against the street’s expectations of USD 8-8.5 per barrel.

The stock settled with a loss of 1.2% at Rs 2,014 on the Bombay Stock Exchange today.

We would see huge correction on Monday, where stock would open around 4-5% down & may be closed 8-9% down. As weight of RIL is 12% of nifty it is likely that RIL would drift down whole market.

After Bombay High Court judgment, the Anil Ambani group firm has asked the other side for talks to a way forward to firm up an agreement.

But RIL is yet to agree for a discussion on the grounds that it is studying the implication of the judgment.

Sources said RNRL has written a letter to Mukesh Ambani- run RIL seeking time and date for talks on the agreement.

The Bombay High Court had lined that RIL should honor its commitment in the family split agreement to supply gas to RNRL. The terms, as per the MoU which split the Dhirubhai Ambani Empire in 2005, were to be based on RIL’s bid for NTPC tender.

RNRL has already filed caveat in the Supreme Court to prevent any ex-parte order in case Mukesh Ambani’s RIL was to appeal against the Bombay High Court order.

In the MoU that split both the companies, the Mukesh Ambani-run firm had committed to supply 28 million standard cubic meters per day of gas to power plants of the group run by his younger brother for 17 years.

The price in the MoU was the same as the one RIL had bid for a 2004 NTPC tender. RIL had bid to supply 12 mmscmd gases to the state-run firm at a delivered price of USD 2.97 per million British thermal unit. The landfall price was USD 2.34 per mmBtu.

However, RIL did not sign a gas sale-purchase agreement (GSPA) with NTPC over disputes on liability in case of default in supplies. The state-run firm has since taken RIL to court seeking ‘performance’ of the bid.

The Bombay High Court in its judgment asked the two brothers to take the help of their mother, if necessary, to arrive at a commercial contract for supply of gas. The terms they have to agree to includes the annual volumes, the year of beginning supplies, take-or-pay clause and a host of other similar commercial agreements leading to GSPA.

If both the companies would reach towards the agreement than RIL would be the main beneficiary as RIL already invest 5.5 billion dollar & company’s profit margin would mainly depend on the sale of the Gas

The data on day two of Q1 advance tax numbers is declared and is quite similar to what we saw yesterday. Big company Reliance disappointed, while oil marketing companies (OMCs) and banking sector reported strong numbers.

Oil Marketing Companies:

Today’s numbers seem relatively on the same page as the numbers which came out yesterday. All this is source-based data but one interesting trend to be pointed out is that the oil-marketing companies are back with retaliation this quarter. BPCL reported good numbers, it paid Rs 40 crore versus nil last year and HPCL paid Rs 15 crore versus nil last year. So there was a great deal of advancement in the oil-marketing company sector.

Auto Sector:

As per auto sector is considered, we didn’t have any auto numbers yesterday but we have two fresh auto numbers for you today. The numbers were flattish in the auto sector––M&M Rs 22 crore versus Rs 23 crore, Bajaj Auto paid Rs 50 crore versus Rs 50 crore last year. So there are unchanged and flattish numbers in the auto sector over there.

Banking Sector:

Of course, banks yet again were the redeemers as far as the revenue department is concerned. We had a bunch of handsome numbers yesterday in the banking sector led by State Bank of India. We have two fresh banking numbers today––Standard Chartered paying rupees Rs 250 crore versus Rs 210 crore and we have Citi Bank paying Rs 180 crore versus Rs 172 crore.

Pharma:

Also pharma seems to have had disappointing Q1. GSK Pharma reported Rs 35 crore versus Rs 55 crore.

The Bombay High Court has given decision is in favour of RNRL which will now get nearly 28 mmscmd of gas for 17 years at a price as determined in the original Memorandum of Understanding (MoU) signed during the Reliance de-merger. The MoU very clearly stated that the price which will be given to NTPC will be the same price at which RNRL will be getting gas. At present the price would be around USD 2.34 per mmbtu. 

Going back to the Empowered Group of Ministers’ (EGoM) decision, the EGoM came out with a pricing of USD 4.2 per mmbtu might not hold. If the High Court is saying that it should be at USD 2.34 or at the MoU price then RIL would have to sell the gas USD 2.34 per mmbtu to RNRL. 

If we look at the marketing margins point, as of now the marketing margin is fixed at 13.5 cents per mmbtu. That means that the additional cost would be of transportation.The latest Global Gas price is much above the USD 6 mark. So it is going to be a steep discount to the current market price in any case so reliance would be in big loss along with Indian government clearly.

The big question is what the government will do because the gas belongs to the government and Reliance is only an operator of the field. If we look at it from that perspective, the government is going to lose the money. The production sharing contract very clearly says that whatever RIL is going to invest into the KG Basin, it will get returns on that. So, it basically means that if the price of gas comes down to USD 2.34 per mmbtu the government’s share or profit will come much later and not much earlier. It basically means that.

So, for an extended period of time, RIL will recover the capital cost that it has incurred on the KG D6 Basin and only then will the government profits come in.

Reliance Industries Ltd has declared its fourth quarterly results on Thursday, April 23, 2009. RIL reported a 9.3 per cent fall in its fourth quarter net profit at Rs3,546 crore (down 1 per cent at Rs3,874 crore excluding exceptional items) and a 21.47 per cent drop in fiscal 2008-09 (March-April) profit at  Rs15,279 crore.

Fourth quarter turnover dropped 24 per cent to Rs28,362 crore while turnover for the full year rose 9.6 per cent to Rs1,46,291 crore, the company said while announcing its unaudited financial results for January-March 2009.

The $54 billion Reliance Industries Ltd, India’s biggest energy group, which has been hurt by the squeeze on margins by the oil price spike and the global economic downturn, still fared better than market expectations.

Reliance Power has announced its FY09 results. The company’s FY09 consolidated net profit was at 244.51 crore versus Rs 85.38 crore, YoY

Its standalone net profit was at Rs 248.90 crore versus Rs 94.67 crore, YoY.

Reliance Natural Resources (RNRL) has come out with FY09 numbers. Its consolidated net profit went up at Rs 71.5 crore versus Rs 68.5 crore.

The company’s consolidated income from operations was up at Rs 270 crore from Rs 203 crore.

Mukesh Ambani-led Reliance Petroleum Limited (RPL) declared its Fourth quarterly results on Thursday. The company reported a net profit of Rs 84 crore and a net turnover of Rs 3,678 crore for the quarter ended March 31, 2009.

The company started commercial production from March 15. Hence, figures for the Last year were not available.

The total expenditure during the quarter amounted to Rs 3,564 crore, RPL said in a filing to the Bombay Stock Exchange, adding that “the total capital employed by the company is Rs 33,982 crore.”

Shares of the company reacted positively to the news and were trading at Rs 109.60, up 2.72 per cent in the late afternoon trade on the BSE.

A fire broke out at a section of the new 580,000 bpd export refinery of Reliance Petroleum on Wednesday.

The fire was in the coker unit, a spokesperson said. He also said that no casualties had taken place as it was controlled on time.

“The rest of the RPL refinery is operating normally and product dispatch from the RPL refinery is continuing as per schedule,” he said.

The company’s coker unit, which converts residual fuel oil into lighter fuels such as naphtha and diesel, has a capacity of 200,000 bpd.

Reliance Petroleum Ltd (RPL) did not confirm that the coker plant was affected.

“There was a minor fire in a section of the RPL Refinery. The fire was localized, contained and brought under control by the Reliance firefighting team within 30 minutes,” a company spokesman said in a statement.

The company did not give details about the extent of damage caused by the fire.

Reliance Industries (RIL) will replace US energy major Chevron Corp to become the 13th largest oil refining company in the world after its board approved plans to absorb its Reliance Petroleum unit.

RIL, the nation’s largest listed private firm, will issue one share for every 16 held in RPL, giving it direct control of the world’s largest refinery complex.

The company’s 33 million tons only-for-export refinery at Jamnagar together with adjacent 29 million tons SEZ refinery of RPL would make it the largest refining company in India. It displaced state-owned Indian Oil Corp (IOC) with 50.7 million tons refining capacity. IOC was ranked 18th on the world list.

The 1.24 million barrels per day refining capacity made the port city of Jamnagar in Gujarat the single largest refining hub in the world.

In the list of world’s largest refining companies, RIL would replace Chevron to become the 13th largest firm. Chevron has refining capacity of just over 61 million tons.

The list is lead by Exxon Mobil with a massive 268 million tons of refining capacity followed by Sinopec of China with 210 million tons of refining capacity. PetroChina with 130 million tons a year capacity is at 7th position. Royal Dutch Shell (199.25 million tons) is ranked third in the world, followed by BP (161.6 million tons) and ConocoPhilips (140 million tons).

Prior to the merger, RIL will also buyout Chevron’s five per cent holding in RPL at Rs 60 a share. Chevron had invested in RPL in April 2006 to have a refining base in South Asia.

Before the merger, RIL did not find a mention in the list of the world’s top 25 companies by refining capacity. IOC was the only Indian firm in the list and after the entry of RIL, the state-run company would drop one position to the 19th.

Iranian national oil firm National Iranian Oil Company is a step ahead of RIL on the world list with 83 million tons a year refining capacity.

Reliance Industries Limited (RIL) and Reliance Petroleum Limited (RPL) boards had a meeting today on mega merger proposal. The merger will make the RIL one of the largest refiners in the world.

The boards have decided the swap ratio (conversion ratio) at 16:1 which implies that RPL shareholders will get one RIL share for every 16 shares held in RPL. RIL has decided to extinguish its treasury stock.

The merger will be effective from April 1, 2008.

Commenting on the merger, Reliance Industries Chairman and Managing Director Mukesh Ambani said, “The merger follows enduring philosophy of creating shareholder value.”

Reliance Industries ltd (RIL) Q3 net profit was down 9.8% at Rs 35010 million (Rs 3501 crores) for the quarter ended December 31, 2008 as compared to Rs 38820 million (Rs 3882 crores) for the quarter ended December 31, 2007. Its net sales were down 8.8% at Rs 31,563 crore versus Rs 34,590 crore.

Couple of weeks back, we had seen Satyam Fraudulence case. Its important to know which stocks are not at safe side at this time of crises. As we all know Precaution is better than cure, it’s better to get rid of few stocks by this time and book profits in those stocks.

A poll carried out by a leading business daily, Mint, has identified that the Reliance-ADAG Group, the Mukesh Ambani group, and realty companies are the least trusted in corporate governance practices in India. Fund managers, stock brokers are market analysts constituted the audience for this poll.

Too many cash dealings and opaque nature of transactions were among the key reasons these groups were considered poor on the ethical parameter.

So this is the time to get rid of all the stocks of

-       RNRL as nobody knows what business they are doing.

-       Reliance capital

-       Reliance Industries (not at all good in corporate governance)

-       All Real Estate stocks

We would suggest to book profits in these stocks and should get rid of all these stocks at this time (may be you can buy it later, when market recovers back.). And include some other stocks which are good at corporate governance like tata group stocks.