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.

Rejecting offer for talks, Mukesh Ambani-run Reliance Industries on Tuesday told Anil Ambani group firm RNRL that it would not sign any agreement on the gas supply issue without approval of the government. RIL, which is believed to be preparing to move the Supreme Court early next month, in a communication to RNRL noted that it had been advised that there was lack of clarity in the judgment on the aspect of the government’s role in the issue, sources in the know said quoting the letter.

“We cannot sign any agreement without approval of the government on price, quantity and tenure,” the letter said, adding that RIL was still in the process of legal consultation and shall revert.

Yesterday, RNRL officials had waited in vain for a meeting they had proposed vides a letter dated June 25 with their counterparts in RIL. The Bombay High Court had on June 15 given the two companies a month’s time to work out firm gas volumes, price, timelines and other commercial details for sourcing the fuel from Krishna-Godavari basin fields.

The Court had also ruled that RIL should honor its commitment in the family split agreement to supply gas to RNRL

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.

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.

Initial estimates say exports declined by 13.7% & imports by 18.2%.

Exports and imports in February are estimated at $13.04 billion and $17.02 billion, respectively. Exports had expanded 43.6 per cent in February 2008, while imports grew 47 per cent. The last time when exports declined on a continuous basis was between July 2001 and December 2001.

BSE Sensex: (8446) market regain in the last hour of trade & still trading around major support level of 2650.Market mainly gain because of Metal support. Today market will start on positive note backed by RBI move & Positive global market. But we still believe that shorts will be the best opportunities on gain because market has not shown any strength unless market crosses the mark of 8700.

The support for the Sensex is 8150 and the resistance to the up move is at 8600-8700

Nifty: (2645) the support for the Nifty is at 2600-2550-2500 and the resistance to the up move is at 2700-2730

The Reserve Bank of India has announced the long awaited rate cut. It has reduced the repo rate by 50 basis points to 5% and cut the reverse repo rate by 50 basis points to 3.5% with immediate effect.

This cut is mainly because of lower GDP data & inflation which is likely to go towards southwards. Most of the market analyst believes that this is a much delayed step taken from RBI. Market won’t react much positive Up-side really because of this move as broadly it is in line with expectation.

However, when the RBI Governor D Subbarao had met with leading bankers on February 27 to discuss the prevailing economic and credit condition, they informed him that liquidity was at a comfortable level and any rate cut by the central bank would not translate into a lending rate cut by the banks.

BSE Sensex: (8427) market reached our first target of 8400 & moving towards our second target of 8100.We firmly believe that if 8150 should be held so some trading can be done on that level. But if it broke that level also than 7500 would be the next target for the sensex.

The support for the Sensex is 8150 and the resistance to the up move is at 8600-8700

Nifty: (2622) the support for the Nifty is at 2600-2550-2500 and the resistance to the up move is at 2700-2730

The Sensex closed below the November closing low of 8451 lowest over three years and the Nifty broke crucial support level of 2650.Earlier as we said our market also made new lows today with an Intraday low of 8393.Other global financial markets are also traded at their historical lows.While Europe Stock Index Hits Life Low , Tokyo  Hits 25-Year Low.

BSE Sensex: (8607) as we said market has not shown any sign of up-moves & again we are in the process to see new lows. So stay away from the market and wait till this market broke the resistance level of 8800.Till that it is very weak market.
 

The support for the Sensex is 8390-8150 and the resistance to the up move is at 8700-8800

Nifty: (2675) the support for the Nifty is at 2630-2610 and the resistance to the up move is at 2730

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.”