RELIANCE INDUSTRIES: THINK GLOBALLY ACT LOCALLY
Article Abstract:
Reliance Industries Ltd (RIL) posted a 50.88 percent higher sales at Rs97,191.8 million in 1997-98 (Rs64,416.5 million in 1996-97). Its operating profit grew by 54.19 percent to Rs25,234.5 million (Rs16,290.3 million). Its net profit increased by 25 percent to Rs16,526.7 million. RIL had posted volume growth in 1997-98. It sells 97 percent of its output in India. It is the only producer of purified terephthalic acid (PTA) in India. It produces polyvinyl chloride (PVC), polyethylene (PE) and polypropylene (PP). It plans to increase its PP capacity from 4 lakh tonnes per annum (tpa) to 6 lakh tpa. It has a grassroot multi-feed cracker which uses 7.5 lakh tpa of naphtha and natural gas to produce ethylene and propylene at Hazira. RIL spends 49 percent on raw material, 3 percent on energy and utilities, 4 percent on employee cost, 3 percent on sales and distribution and 41 percent on others. Its plastics and intermediates contribute 38 percent, polyester 24 percent, fibre intermediates 21 percent, chemicals 12 percent, textiles 3 percent, oil and gas 2 percent to the turnover of RIL. The return on capital employed was 12.59 in 1997-98. Its equity is likely to increase by 15 percent. Its scrip price has fallen to Rs148 now from Rs191.3 in April 1998. The current market price of the scrip is 8.23 times its earning per share of 1997-98. (rk)
Comment:
Posts sales of 50.88% at Rs97,191.8 mil for year ended 1997-1998 compared to Rs64,416.5 million for 1996-1997
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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BRITANNIA INDUSTRIES: A REVIEW
Article Abstract:
Britannia Industries makes biscuits and other bakery products. It almost doubled its biscuit manufacturing capacity in 1997-98. Biscuits account for 85 percent, bread 7 percent, dairy products 4.5 percent, cakes 2 percent and exports of marine products 1.5 percent of its total sales. It has launched new brands like Tiger. The Tiger biscuit has grown to a Rs1 billion brand within a year of its launch. Its dairy products are likely to account for 20 percent of the revenue in the next 2-3 years. It has recorded a compounded annual growth rate of 17.6 percent in sales and 25 percent in net profit for the past 5 years. Its net sales have increased by 23.7 percent to Rs500.4 crore and the net profit by 35.6 percent to Rs18.9 crore in the first half of 1998- 99. Its operating profit margin increased to 7.4 percent from 6.8 percent. It is projected to post a growth of 30 percent in the next 2 years. (rk/kvr)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1999
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