<div>India’s largest private company, Reliance Industries has slipped at three fronts — revenue, export and cash flow — in its first quarter result while discounting the rupee depreciation. The company’s revenue fell by 4.6 per cent to Rs 90,589 crore and net profit rose by 18.9 per cent to Rs 5,352 crore in rupee terms. But the revenue fall is higher at 10.53 per cent or $1.8 billion — from $17.1 to $15.3 — while comparing it in dollar terms that stated in the media releases.<br /><br />There is a reason why Reliance’s revenues in dollars need to be compared. In the June ended quarter, the company has earned an export revenue share of 62.75 per cent or $9.6 billion. A lion share of these transactions is believed to be in dollars because of the company’s higher dependency in the refined petroleum products export, which is mostly in the US currency.<br /><br />Reliance claims the export has risen by 3.2 per cent to Rs 57,026 crore. Again in dollar terms, the export revenue has slipped by 3 per cent to $9.6 billion from $9.9 billion. This comparison is more accurate than doing it in rupee terms. (According to Reliance’s numbers, the dollar stood at Rs 55.82 in Q1 12-13 and at Rs $59.40 in this quarter.) In fact, export revenue share has increased to 62.75 per cent from 57.89 per cent because of the natural gas output fall at Krishna Godawari (KG) basin and the resultant domestic revenue reduction. And, that doesn’t need to be counted, say analysts.<br /><br /><span style="color: rgb(128, 0, 0);"><strong>Read Also</strong></span><strong>:<a href="http://businessworld.in/en/storypage/-/bw/ril-q1-net-jumps-19-tops-estimate/r994214.16627/page/0"> Reliance Industries Q1 Net Jumps 19%</a></strong><a href="http://businessworld.in/en/storypage/-/bw/ril-q1-net-jumps-19-tops-estimate/r994214.16627/page/0"><br /></a><br />After revenue and export falls, the third dent in the balance sheet is at the cash flow. Reliance’s profit before depreciation, interest and tax (PBDIT) went up by 10.3 per cent to Rs 9,610 crore again in rupee terms. But the media releases of both the quarterly results quote the dollar PBDIT as flat at $1.6 billion.<br /><br />The Rs 849-crore jump at the net profit is partly because of the reduced depreciation, which fell by Rs 325 crore. Moreover, the interest cost was higher by just Rs 26 crore even after the rupee fell by Rs 4-5 year-on-year. Considering Reliance’s higher foreign currency borrowings, the interest outgo was expected to be higher. The outstanding debt stood higher at $13.5 billion at the end of June 2013 compared to $13.2 billion a year back. The saving grace is that the cash reserve of $15.7 billion, which went up by $3 billion in one year because of the cash flows in the previous quarters. <br /><br />nevin (dot) john (at) abp (dot) in<br /><br /> </div>
