Skip to main content 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited Investor Presentation | Shale Experts
Loading...
Pm

1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited

Reliance Industries Limited · Jul 19, 2014 · 70 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 1
    1Q FY 2014-15 Financial Results 19 July 2014
  2. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 2
    Financial Results 3 www.ril.com
  3. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 3
    Consolidated Financial Results : 1Q FY15 % Change % Change 4Q FY14 (in Crore) 1Q FY15 1Q FY14 Y-o-Y Q-o-Q 106,208 T urnover 107,905 100,615 7.2% 1.6% 7,211 EBIT 6,916 5,378 28.6% -4.1% 5,881 Net Profit 5,957 5,237 13.7% 1.3%…
  4. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 4
    Operational Highlights 1Q FY 2014-15 Refining Crude throughput of 16.7 MMT, operating rate of 108% (lower throughput due to planned turnaround) GRM at 8.7/bbl as compared to 8.4/bbl last year ( 9.3/bbl in 4Q FY14) GRM weaker on Q-o-Q…
  5. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 5
    Consolidated Segment Revenue : 1Q FY15 % Change % Change 4Q FY14 (in Crore) 1Q FY15 1Q FY14 Y-o-Y Q-o-Q 96,668 Refining 98,081 91,463 7.2% 1.5% 26,541 Petrochemicals 25,398 23,228 9.3% -4.3% 2,798 Oil & Gas 3,178 2,496 27.3%…
  6. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 6
    Consolidated Segment EBIT : 1Q FY15 % Change % Change 4Q FY14 (in Crore) 1Q FY15 1Q FY14 Y-o-Y Q-o-Q 3,962 Refining 3,814 2,947 29% -4% 2,150 Petrochemicals 1,863 1,757 6% -13% 762 Oil & Gas 1,042 486 114% 37% 24 Organised…
  7. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 7
    Consolidated Earnings - 1Q FY15 % Change % Change 4Q FY14 (in crore) 1Q FY15 1Q FY14 Y-o-Y Q-o-Q 7,211 Segment EBIT 6,916 5,378 28.6% -4.1% (978) Interest Expense (505) (938) 46.2% 48.4% 1,250 Interest Income 1,187 1,533 -22.6%…
  8. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 8
    Refining & Marketing 9 www.ril.com
  9. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 9
    Business Environment Steady macroeconomic recovery underway US indicators continue to remain supportive Economic environment in EU stabilizing China showing signs of a cautious recovery 2014 oil demand expected to grow at…
  10. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 10
    Global Refining Margins Global Refinery Margins Refining margins decline across all key regions 20 US refiners continue to witness high margins and 15 operating rates 10 6.7 Rising shale oil supply 6.2 5 5.2 5.4 5.8 Low cost…
  11. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 11
    Light Distillates Cracks Source : Platts Source : Platts Significant strength in naphtha cracks Gasoline cracks improved across regions Asia - cracks improved on the back of Asian cracks supported by strong petchem Ramadan…
  12. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 12
    Middle Distillates Cracks Source : Platts Source : Platts Gasoil cracks weakened in all regions Jet-kero cracks weakened further during 1Q Asia - Demand weakness in Asia weighed on Demand in major Asian and other emerging…
  13. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 13
    Fuel Oil Cracks Asian Fuel Oil cracks witnessed a weak period during the quarter Efficiency improvement and slow demand growth impacting bunker fuels demand Low LNG prices incentivized switching from FO in Japanese market Source…
  14. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 14
    Business Performance R&M segment sustained superior Asian Product 1Q 4Q Q-o-Q 1Q Y-o-Y Cracks (/bbl) FY15 FY14 Change FY14 Change performance despite weak margin environment Naphtha -1.0 -1.5 0.5 -7.1 6.1 Weaker middle distillate…
  15. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 15
    Performance Highlights : 1Q FY15 Crude processing of 16.7 MMT, operating rate : 108% GRM : 8.7/bbl ( 9.3/bbl in 4Q FY14) Continuous stress on advantaged feedstock acquisition 4 new crudes processed during the quarter Total crude…
  16. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 16
    Gasification Project - Steam Super-heater 1 17 www.ril.com
  17. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 17
    Gasification Project - Gasifier Structure Module 1 18 www.ril.com
  18. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 18
    Gasification Project - Gasifier Structure Module 2 19 www.ril.com
  19. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 19
    Gasification Project - Slurry Storage Tank Module 1 20 www.ril.com
  20. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 20
    Product Placement India Domestic Demand (KT) % Change Refinery Sales (KT) Product 1Q FY14 4Q FY14 1Q FY15 1Q - 1Q 1Q vs 4Q (Unit in KT) 1QFY 15 4QFY 14 % Change MS 4381 4251 4796 9.5 12.8 PSU Sales 1,836 1,538 19.3% HSD 18469 17087…
  21. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 21
    R&M Business Outlook 2014 Global macro-economic outlook improving Global oil demand set to grow at 1.3% p.a. over the next 5 years Asia and the Middle East are forecast to dominate growth Refinery capacity adds continue - but…
  22. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 22
    Petrochemicals 23 www.ril.com
  23. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 23
    Business Environment Feedstock prices remained firm supported by Polymer prices up by 5-10% on Q-o-Q basis supply concerns for crude oil due to cost push and strong China demand Global cracker operating rate at 86.5% Overall product…
  24. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 24
    Asia Leads Global Polymer Demand Growth 65% PP % of global demand growth 60% PVC 55% 50% PE 45% 40% 35% 2009 2012 2015 2018 2021 2008 2010 2011 2013 2014 2016 2017…
  25. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 25
    SE Asia Price Movement - Polymers % Change % Change /MT 1Q FY14 4Q FY14 1Q FY15 Q-o-Q Y-o-Y Oil - Dubai (/bbl) 101 105 106 1% 5% Naphtha 823 903 917 2% 11% Ethylene 1263 1439 1447 1% 15% Propylene 1325 1338 1309 -2% -1% EDC…
  26. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 26
    Polymer Deltas PP-Propylene 5 Year Avg. HDPE-Naphtha 5 Year Avg. 250 232 700 200 581 608 200 600 575 500 150 114 /MT 400 /MT 100 300 200 50 100 0 0 1Q FY14 4Q FY14 1Q FY15 1Q FY14 4Q FY14 1Q FY15 On Q-o-Q basis:…
  27. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 27
    Operations and Domestic Demand RILs 1Q FY15 polymer production at 1.1 MMT RIL Production Overall RILs polymers production share was 60% in Production (KT) 1Q FY14 1Q FY15 1Q FY15 PE 251 266 PP 703 690 Domestic market share stood at…
  28. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 28
    New PP Application: Geosynthetics for Railway Tracks Railway tracks on black cotton soils can experience the following difficulty: Pumping of soil into ballast; Reduces strength & drainage capacity Penetration of ballast into soil ;…
  29. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 29
    Outlook Ethylene operating rates expected to firm up in SE Asia to over 89% in the near term SE Asia polymer demand growth estimated at 5-6% in 2014; global growth 4-5% SE Asian outlook remains positive with demand outpacing supply…
  30. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 30
    Elastomers 31 www.ril.com
  31. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 31
    Butadiene Although demand remained sluggish in Butadiene-LPG 5 Year Avg. Asia, prices improved during 1Q by 1200 150/MT to the level of 1350/MT following 900 limited supplies (plant outages in US) 596 /MT 600 424 426…
  32. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 32
    Polybutadiene Rubber (PBR) RIL commissioned 40 KTA PBR capacity PBR-Butadiene 5 Year Avg. 1000 Maintains No.1 position in elastomers 850 800 sector in Indian sub-continent 600 544 585 /MT RIL is the only manufacturer of PBR…
  33. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 33
    Project Status Installed Capacity Proposed Expansion Total Capacity (KTA) (KTA) (KTA) Styrene Butadiene Rubber - 150 150 Butyl Rubber - 120 120 Setting up world-scale SBR plant at Hazira commissioning expected in FY15…
  34. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 34
    Polyester & Fibre Intermediates 35 www.ril.com
  35. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 35
    Business Environment Fibre Intermediates Polyester Challenging business environment - high volatility Polyester margins under pressure owing to the across the feedstock and intermediates markets uncertain feedstock markets and…
  36. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 36
    Domestic Polyester Demand Expected firming of raw material costs pushed up demand during the quarter 1Q FY15 vs. 1Q FY14 Demand Growth (%) 8% 8% PSF demand declined Y-o-Y 6% 5% 5% Q-o-Q demand up 11% - producers have 4% shifted…
  37. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 37
    Price Movement % Change % Change /MT 1Q FY14 4Q FY14 1Q FY15 Q-o-Q Y-o-Y Oil - Dubai (/bbl) 101 105 106 1% 5% Naphtha 823 903 917 2% 11% PX 1427 1285 1264 -2% -11% PTA 1074 956 943 -1% -12% MEG 979 960 943 -2% -4% POY 1477…
  38. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 38
    Polyester Delta Scenario POY-PTA-MEG 5 Year Avg. PSF-PTA-MEG 5 Year Avg. 300 250 225 216 212 200 181 183 210 200 150 /MT /MT 100 100 50 0 0 1Q FY14 4Q FY14 1Q FY15 1Q FY14 4Q FY14 1Q FY15 PET-PTA-MEG 5 Year Avg.…
  39. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 39
    Intermediates Delta Scenario PX-Naphtha 5 Year Avg. PTA-PX 5 Year Avg. 600 569 200 150 132 400 351 108 109 /MT 313 /MT 100 200 50 0 0 1Q FY14 4Q FY14 1Q FY15 1Q FY14 4Q FY14 1Q FY15 PTA overcapacity, uncertain…
  40. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 40
    Benzene and LAB Delta Scenario Benzene-Naphtha 5 Year Avg. 500 428 Tight benzene markets favoured 400 363 341 margins above long-term averages 300 /MT Strong demand from USA, Europe 200 100 and Middle East 0 Benzene…
  41. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 41
    RIL Operational Highlights Production (KT) 1Q FY14 1Q FY15 Production (KT) 1Q FY14 1Q FY15 PX 428 477 POY 167 220 PTA 499 519 PSF 157 148 MEG 159 160 PET 87 87 TOTAL 1086 1156 TOTAL 411 455 Polyester production improved…
  42. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 42
    New Product Developments Apparel fibre and yarns Recron Lite Imparts better bounce, used for extra-light dress materials Recron Lnlyk Special textured yarn to give linen like look in the Shirting & Bottom weight fabrics Recron…
  43. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 43
    Business Outlook Indian polyester production growth estimated at 10% during 2014-16 But also strong recyclate growth takes up market share PX to witness significant capacity adds, outpacing demand in 2014 Likely rationalization of…
  44. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 44
    Oil and Gas Exploration and Production 45 www.ril.com
  45. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 45
    Business Environment As per IEA, Indias LNG imports to increase by over 50% from 47 MMSCMD in 2013 to 79 MMSCMD by 2019 - Indian Gas Demand and Projected Gas Imports - MMSCMD entailing higher forex outflow 250 214 Recent…
  46. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 46
    Domestic E&P Production Update 4Q FY 14 (JV Production) 1Q FY14 1Q FY15 % Chg. Panna-Mukta 1.7 Oil (MMBBL) 1.8 2.0 16% 14.5 Gas (BC F) 16.9 18.2 7% T apti 0.1 Oil (MMBBL) 0.1 0.1 -15% 5.9 Gas (BC F) 7.8 4.5 -42% KG-D6 0.6 Oil…
  47. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 47
    KG-D6 Block Update Two Rigs are in operation Work Program and budget for the FY15 approved by Management Committee Appraisal of D55 Discovery Drilling of second appraisal well MJ-A2 completed and results are under evaluation…
  48. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 48
    Other Updates Panna-Mukta Block 1 infill well in Panna-G put to production during the quarter Mukta-B development in progress - drilling of MB wells planned during monsoon-2015 with first oil in 1H FY16 Tapti Block Production is…
  49. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 49
    Coal Bed Methane (CBM) Coal Bed Methane Current portfolio comprises of 2 blocks Sohagpur East and West On track to achieve first gas by mid 2015, more than 50% of Phase -1 scope completed o Land acquisition is in advanced stage…
  50. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 50
    Shale Gas Business 51 www.ril.com
  51. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 51
    Price Environment Gas price: 4.60/MMBtu in 1Q FY15 vs. 4.94/MMBtu in 4Q FY14 US Natural Gas Inventory Levels (Bcf) Inventory in storage remains low, but has improved from 822 BCF at the end of 4QFY14 (lowest level since 2003)…
  52. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 52
    Business Performance Highlights 1Q FY15 4Q FY14 1Q FY14 % Chg. from 4Q FY14 % Chg. from 1Q FY14 Production (BCFe) 48.6 44.2 37.7 10% 29% Revenues ( MM) 270 266 214 2% 26% EBITDA ( MM) 201 199 165 1% 22% Gross JV production now…
  53. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 53
    Business Growth Trends Net Sales Volumes Wells Drilled and Put on Production 1000 (Reliance Share) 900 873 45.0 41.4 Wells Drilled 815 NGLs Condensate Gas 800 762 40.0 36.7 37.5 Wells put on Production 697 RIL Share of Volumes…
  54. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 54
    Shale Gas JVs: Development Progress Overview Particulars Pioneer JV Carrizo JV Chevron JV TOTAL Average Rigs in operation 10 1 4 15 Wells Drilled (Inception to date) 472 98 303 873 Wells Drilled in 1Q FY15 35 0 23 58 Total on line…
  55. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 55
    Reliance Retail 56 www.ril.com
  56. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 56
    Macro Environment CPI High food inflation at 8% 10% 11% continues to dampen consumption Food Inflation 8% 7% Consumption growth at lowest in last eight years Consumption Growth YoY 10% 9% High food inflation, slow 6%…
  57. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 57
    Key Highlights - 1Q FY15 Turnover at 3,999 crore, up 15% Y-o-Y LFL growth of up to 21% across formats CAGR of 32% over the last two years Record PBDIT of 171 crore in 1Q FY15 vs. 70 crore in the same period last year Y-o-Y growth…
  58. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 58
    Key Highlights - 1Q FY15 Reliance fresh store portfolio Reorganization within and across cities for optimized profitability Overall portfolio being augmented Impact of regulatory conditions continues to impact the Jewels business…
  59. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 59
    1Q FY15 Turnover & Mix Revenue ( crore) 1Q FY15 turnover for Retail business at 3,999 3,999 crore Growth of 15% Y-o-Y 3,492 PBDIT of 171 crore Growth of 144% Y-o-Y Q1 FY 2014 Q1 FY 2015 Revenue Mix 1Q FY14 Revenue Mix 1Q…
  60. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 60
    Turnover Growth by Sector Value & Others 18% Fashion & Lifestyle 31% Digital 32% Brands 50% -46% Jewellery Overall turnover growth of 15% Continued strong growth in Digital, Lifestyle and Brands business Regulatory…
  61. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 61
    Store Network Store Count by Format Sector Mar 31, 2014 Jun 30, 2014 Jewellery 54 54 368 Brands 102 100 539 151 Digital 284 427 Fashion & Lifestyle 533 540 Value & Others 718 602 Store Count 665 Total 1,691…
  62. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 62
    Progress on Key Objectives Sustained growth in Rapidly expanding revenues network Turnover ( crore) Store Count 3,999 1,723 3,492 1,511 1,311 32% CAGR 15% CAGR 2,274 1Q FY 2013 1Q FY 2014 1Q FY 2015 63 www.ril.com
  63. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 63
    Index Sector Updates Value Format Digital Fashion & Lifestyle Brands 64 www.ril.com
  64. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 64
    Value Formats Consolidated store network for greater efficiencies and synergies Introduced own brands under new categories to better options for consumers Own brand contribution increased to 15% from 11% Y-o-Y Reliance Market…
  65. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 65
    Digital Rapidly scaled up Digital Express Mini format with over 180 stores operating across the country Introduced co-planning with OEMs to provide unique and customized solutions for customers Continue to enhance in-store…
  66. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 66
    Fashion & Lifestyle Reliance Trends as a fashion destination Retailing over 100,000 items per day Own brand sales contribution at 65% of sales; an improvement of 100 bps Y-o-Y Launched new own brand to expand womenswear range…
  67. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 67
    Brands Strong growth witnessed in the quarter Turnover increased by 50% Y-o-Y Long term partnership with BCBG MAX Azria Group for launching flagship brand Launched brands under Iconix Lifestyle India Candies Umbro Ed Hardy…
  68. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 68
    Summary 69 www.ril.com
  69. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 69
    Summary Steady operating quarter reflecting intrinsic strength of RILs energy businesses Petrochemicals robust polymer contribution balancing weakness in polyester Refining light-end cracks offset weakness in middle distillates;…
  70. 1 Q FY 2014 15 FINANCIAL RESULTS – Reliance Industries Limited – slide 70
    Thank You

From the store

Browse maps, data & reports in the Shale Experts store