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Reliance Results: EPS down 11.9%

Reliance Industries announced results today. Q3 EPS is down 11.9% from 26.7 to 23.5. Revenue down 10% at 3156 cr. Profit sits in at 3501 cr., not directly comparable to Q3 FY08 due to the RPL stake sale that bumped up profits by 4300 cr. EPS has also been impacted by Mukesh Ambani’s conversion of 12 crore warrants into shares, for which he’s paid a whopping 16,800 cr.

RIL Q3 Profits would’ve been lower by 1177 cr. if forex calculations reflected AS11, which Reliance has steadfastly refused to follow. That’s like 1/3rd the net profit of the quarter. Candidate, surely, to add into the SoS, but I’ll wait till tomorrow – after all, results were announced post trading hours so it wouldn’t be fair.

Overall, quite disappointing and this must do horrible things to the Nifty EPS. We have been at 228 or so all of 2008, and starting 2009 we are going to see earnings drop – not one estimate I’ve seen includes that possibility, yet. The times, they are a-changing.

The stock was flat today at 1,135.

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