Commissioning of mega projects leads to doubling of balance sheet size in three years: RIL’s balance sheet size has doubled in three years, led by its investments in KG-D6 and the RPL merger. Its gross block has more than doubled in the last two years, led by commissioning of the KG-D6 project and the merger of RPL. Capitalized cost of KG-D6 is ~Rs390b while that of RPL is ~Rs330b.
RoE depressed due to higher DD&A and increased tax rate: RIL’s RoE for FY10 was depressed at 13.4% v/s an average of 20% in the last three years, led by higher DD&A charge, reduction in interest capitalized, and higher tax rate (21% in FY10 v/s an average of 16% in last three years)...
To read full research report you can refer to:
http://www.dsij.in/productattachment/BrokerRecommendation/Rel%20Indust.pdfSource: Dalal Street Investment Journal
www.dsij.in
Subscribe to our newsletter to get free stock market tips and investment advice!
RSS Feed
RSS