Thursday, January 21, 2010
Tuesday, November 24, 2009
KERALA TOURISM WEBSITE tourismforkerala.com Kerala Tourism website provides details of travel destinations, hotels, accommodation, culture, heritage, art forms,medical tourism.cheapadvertising opportunity also. http://tourismforkerala.com
KERALA TOURISM WEBSITE tourismforkerala.com
> Bharatanatyam
> Mohiniyattam
> Kaikottikali
> Kolkali
> Kalarippayattu
> Oppana
> Teyyam
> Ottanthullal
> Poorakali
> Kummattikali
> Margam Kali
> Duff Muttu
> Thidambu Nritham
> Chakyar Koothu
> Onam
> Vishu
> Thrissur Puram
> Sabarimala
> More arts.
Kerala Tourism website provides details of travel destinations, hotels, accommodation, culture, heritage, art forms,medical tourism.cheapadvertising opportunity also.
http://tourismforkerala.com
Arts and Festivals
> Kathakali> Bharatanatyam
> Mohiniyattam
> Kaikottikali
> Kolkali
> Kalarippayattu
> Oppana
> Teyyam
> Ottanthullal
> Poorakali
> Kummattikali
> Margam Kali
> Duff Muttu
> Thidambu Nritham
> Chakyar Koothu
> Onam
> Vishu
> Thrissur Puram
> Sabarimala
> More arts.
Tuesday, October 20, 2009
BSNL rolls out 3G services in orissa
Published on National Portal of India www.india.gov.in
Telecom giant BSNL today rolled its 3G services in the State making
Orissa part of the global network.
The services would be available in Bhubaneswar and Puri in the first
phase before being expanded to other parts of the State.
BSNL has plans to bring under 3G coverage all the 30 district
headquarters and 18 other industrially and commercially important
towns this year. By month-end, four more towns would be covered while
the rest will be on 3G map by June/July.
The telecom major has augmented its existing network to operationalise
the 3G services. An estimated Rs 75 crore has been invested to upgrade
its infrastructure which required installation of new equipment in the
existing 2G towers.
As of now, Cuttack has not been included under the 3G service given a
huge rural pocket and BSNL is working on enhancing its technical setup
so as to bring the Millennium City under the coverage soon.
BSNL 3G services would not only offer high speed mobile broadband but
also support multimedia services, high-resolution colour display, video
call, TV on mobile, streaming options as well as Internet besides a host of
download facilities.
Over a period of time, high-end features like mobile banking and mcommerce
would be made available. All such services would be available
on pre-paid and post-paid segments.
BSNL is the only telecom company to have been awarded 3G spectrum in
India. It, currently, enjoys a mobile subscriber base of 13 lakh in Orissa
and eyes on capitalizing on the 3G advantage to expand its base.
The 3G tariff would be available in three slabs-Rs350, Rs 650, Rs 1,350
on pre-paid platform. Post-paid customers would be given four slabs like
Rs 500, Rs 800, Rs1, 000 and Rs 2,500 since they are in the high-end
brackets.
Published on National Portal of India www.india.gov.in
The tariff has been kept affordable and would appeal to all categories of
customers.
Initially, 3G customers would be given new numbers. As upgradation of
the services goes; customers will be able to use their existing number for
3G services.
It would offer high speed mobile broadband, support multimedia
services, high-resolution colour display, video call TV on mobile as well
as internet and downloading facilities
Telecom giant BSNL today rolled its 3G services in the State making
Orissa part of the global network.
The services would be available in Bhubaneswar and Puri in the first
phase before being expanded to other parts of the State.
BSNL has plans to bring under 3G coverage all the 30 district
headquarters and 18 other industrially and commercially important
towns this year. By month-end, four more towns would be covered while
the rest will be on 3G map by June/July.
The telecom major has augmented its existing network to operationalise
the 3G services. An estimated Rs 75 crore has been invested to upgrade
its infrastructure which required installation of new equipment in the
existing 2G towers.
As of now, Cuttack has not been included under the 3G service given a
huge rural pocket and BSNL is working on enhancing its technical setup
so as to bring the Millennium City under the coverage soon.
BSNL 3G services would not only offer high speed mobile broadband but
also support multimedia services, high-resolution colour display, video
call, TV on mobile, streaming options as well as Internet besides a host of
download facilities.
Over a period of time, high-end features like mobile banking and mcommerce
would be made available. All such services would be available
on pre-paid and post-paid segments.
BSNL is the only telecom company to have been awarded 3G spectrum in
India. It, currently, enjoys a mobile subscriber base of 13 lakh in Orissa
and eyes on capitalizing on the 3G advantage to expand its base.
The 3G tariff would be available in three slabs-Rs350, Rs 650, Rs 1,350
on pre-paid platform. Post-paid customers would be given four slabs like
Rs 500, Rs 800, Rs1, 000 and Rs 2,500 since they are in the high-end
brackets.
Published on National Portal of India www.india.gov.in
The tariff has been kept affordable and would appeal to all categories of
customers.
Initially, 3G customers would be given new numbers. As upgradation of
the services goes; customers will be able to use their existing number for
3G services.
It would offer high speed mobile broadband, support multimedia
services, high-resolution colour display, video call TV on mobile as well
as internet and downloading facilities
Reliance Industries
ACCUMULATE
Price Rs1,785
Target Price Rs1,833
Investment Period 12 months
Stock Info
Sector Oil & Gas
Market Cap (Rs cr) 2,80,852
Beta 1.2
52 WK High / Low 2707/ 930
Avg. Daily Volume 1713210
Face Value (Rs) 10
BSE Sensex 11,329
Nifty 3,481
BSE Code 500325
NSE Code RELIANCE
Reuters Code RELI.BO
Bloomberg Code RIL@IN
Shareholding Pattern (%)
Promoters 49.0
MF/Banks/Indian FIs 13.8
FII/ NRIs/ OCBs 20.1
Indian Public/others 17.1
Abs. 3m 1yr 3yr
Sensex (%) 30.6 (32.2) (4.9)
RIL (%) 54.8 (30.9) 82.7
�� Lower crude, Product prices lead to Net Sales decline: Reliance
Industries’ (RIL) 4QFY2009 numbers were below our expectation on the
Top-line front while the same exceeded our expectations on the Bottom-line
front. RIL’s Top-line fell by 23.9% yoy to Rs28,362cr (Rs37,286cr) primarily
due to the 31.1% and 24.6% yoy fall in Petrochem and Refining Revenues
to Rs9,724cr and Rs21,631cr, while Net Profit (excluding Exceptional items)
fell 1.0% yoy to Rs3,874cr (Rs3,912cr). Crude processing during the quarter
was 7.79mn tonnes (8.10mn tonnes), a decline of 3.8% yoy. For FY2009,
Top-line increased by 9.6% yoy to Rs1,46,291cr (Rs1,33,443cr) on the back
of higher crude and product prices in 1HFY2009.
�� Refining Margins disappoint; Petrochemical strengthens: During the
quarter, RIL reported GRMs at US $9.9/bbl (US $15.5/bbl) as against our
expectation of US $10.5/bbl. Benchmark complex Singapore Margins,
during the quarter, stood at around US $5.4/bbl. Thus, RIL managed to earn
a spread of US $4.5/bbl, which was marginally lower than its previous
performances. Improvement in Petchem Margins, on a qoq basis, continued
in 4QFY2009 as well. Petchem Margins stood at a strong 17.7% (10.4%)
yoy. On the Core business front, blended EBIT Margins stood at 14.5%
(12.4%) during the quarter.
�� Interest Expense increases, Other Income surges: Debt at the end of
FY2009 increased substantially to Rs53,457cr (Rs36,480cr) yoy primarily on
account of increased borrowings and interest capitalisation. This increase in
debt coupled with Rupee depreciation resulted in a 75.4% yoy increase in
Interest Expenditure to Rs477cr (Rs272cr) for the quarter. Other Income
during the quarter increased significantly to Rs993cr (Rs289cr) due to higher
Interest Income on account of higher Cash and gain on sale of investments.
�� PAT declines by 1.0%: PAT during 4QFY2009 stood at Rs3,546cr
(Rs3,912cr) registering a de-growth of 9.4% yoy. However, reported PAT
was suppressed because of Exceptional Item of Rs370cr incurred towards
estimated claims on account of subsidiaries. Excluding this, PAT stood at
Rs3,874cr (Rs3,912cr), a decline of a mere 1% yoy. For FY2009, PAT after
adjusting for Exceptional Items, stood at Rs15,607cr (Rs15,261cr).
Key Financials (Consolidated)
Y/E March (Rs cr) FY2008 FY2009 FY2010E FY2011E
Net sales 137,147 155,670 200,004 229,575
% chg 20.5 13.5 28.5 14.8
Net Profit 19,521 15,520 21,511 27,098
% chg 61.7 (20.5) 38.6 26.0
EPS (Rs) 118.8 94.5 130.9 164.9
EBITDA Margin (%) 16.9 15.8 18.9 19.4
P/E (x) 13.3 18.9 13.6 10.8
RoE (%) 15.6 15.6 17.5 18.3
RoCE (%) 13.1 13.1 14.2 15.4
P/BV (x) 3.0 2.6 2.2 2.0
EV/ Sales (x) 2.2 2.1 1.5 1.3
EV/ EBITDA 13.2 13.0 9.6 6.8
Source: Company, Angel Research
Performance Highlights
Amit Vora
Tel: 022 – 4040 3800 Ext: 322
e-mail: amit.vora@angeltrade.com
Deepak Pareek
Tel: 022 – 4040 3800 Ext: 340
e-mail: deepak.pareek@angeltrade.com
April 24, 2009 2
Oil & Gas
Reliance Industries
Segment-wise Performance
Refining and Marketing (R&M): The R&M Segment delivered a subdued performance
amidst volatility in crude and product prices and demand contraction. Decline in crude oil
prices led to 24.6% yoy reduction in R&M Revenues to Rs21,631cr (Rs28,686cr). On full
year basis, R&M Revenues increased to Rs1,12,351cr (Rs1,00,743cr). Crude processing
during the quarter stood at 7.79mn tonnes (8.10mn tonnes), which was lower by 3.8%
yoy, with the company reporting capacity utilisation at 94.4%. Crude oil processed was
also lower qoq, with 7.87mn tonnes of crude processed in 3QFY2009. On the Margins
front, RIL reported lower-than-expected GRMs of US $9.9/bbl (US $15.5/bbl) as against
our expectation of US $10.5/bbl. Even for FY2009, GRMs fell to US $12.2/bbl
(US $15.0/bbl) as refinery cracks declined sharply in the second half on the back of lower
crude prices and demand contraction. Thus, during the quarter, EBIT Margins were under
pressure on a yoy basis, declining by 87bp. However, the same showed a marginal
improvement on a qoq basis.
Exhibit 1: RIL v/s Benchmark Singapore GRMs
Source: Company, Angel Research
Exhibit 2: Crude Processing and Capacity Utilisation
Source: Company, Angel Research
0
2
4
6
8
10
12
14
16
18
Q1FY06
Q2FY06
Q3FY06
Q4FY06
Q1FY07
Q2FY07
Q3FY07
Q4FY07
Q1FY08
Q2FY08
Q3FY08
Q4FY08
Q1FY09
Q2FY09
Q3FY09
Q4FY09
GRMs US $/bbl
RIL GRMs Singapore GRMs
7
7.2
7.4
7.6
7.8
8
8.2
8.4
20
40
60
80
100
120
Q1FY07
Q2FY07
Q3FY07
Q4FY07
Q1FY08
Q2FY08
Q3FY08
Q4FY08
Q1FY09
Q2FY09
Q3FY09
Q4FY09
mn tonnes
Capacity Utilisation %
Capacity Utilisation % Crude Processing mn tonnes (RHS)
April 24, 2009 3
Oil & Gas
Reliance Industries
Petrochemicals: The Petrochemical Segment Revenues fell 31.1% yoy to Rs9,724cr
(Rs14,119cr) due to lower crude and product prices on yoy basis. However during the
quarter, product deltas showed an improvement, which led to spike in EBIT Margins by
733bp to 17.7% (10.4%). Even sequentially, Margins improved by 458bp.
Exhibit 3: EBIT breakup
Source: Company, Angel Research
Other Highlights
Exploration and Production (E&P): During the quarter, RIL along with Bharat Petroleum
was awarded the deep water block KG-DWN-2005/2 under NELP VII. RIL also made two
gas discoveries during 4QFY2009, one in KG-VD3 Block and other in KG-D6 Block.
On the Production side, oil production from the KG D6 Block has yet to commence as it
was shutdown for repair works in December 2008. According to RIL, production is
expected to resume in the last week of April 2009. RIL commenced its gas production from
April 2, 2009 and effects of which on Revenues and Profitability will be seen 1QFY2010
onwards.
Increased capex towards E&P: During 4QFY2009, RIL incurred capex of Rs6,798cr,
majority of which was spent towards E&P, taking the company’s total capex to Rs24,907cr
for FY2009.
RPL Refinery commissioned: RPL, which dispatched its first parcel of refinery products
in January 2009, processed 3.6mn tonnes of crude during the quarter generating
Revenues of Rs3,678cr and Net Profit of Rs84cr.
Reliance Retail: At the end of 4QFY2009, Reliance Retail had more than 900 operational
stores (same as 3QFY2009) spread across 80 cities with 4.2mn square feet of trading
space. No new stores were opened during the quarter as RIL is in the process of
consolidating its presence in the Retail business.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
4QFY2008 1QFY2009 2QFY2009 3QFY2009 4QFY2009
Petrochemicals Refining Oil and gas Others
April 24, 2009 4
Oil & Gas
Reliance Industries
Outlook
The last six months have been a very challenging period for the company. The global
slowdown has exerted severe pressure on RIL’s benchmark Refining and Petrochemical
Margins.
Petrochemical Segment
RIL has stated that in spite of the ongoing slowdown, it has managed to improve its
cracking margins on account of fairly resilient domestic demand (72% of total demand),
which is less affected by the global slowdown. Revival in Margins could also be attributed
to the de-stocking done in the previous year, and with demand rebounding in 4QFY2009
on account of stability in the feedstock prices resulting in re-stocking at the downstream
level. Margins have particularly improved significantly in the ethylene chain. Improvement
in naphtha prices by more than 100% from its lows also resulted in propylene prices
increasing by 130%. Similarly, as the domestic demand is less affected by the slowdown,
the company was able to charge better Margins in the domestic markets over and above
the International Margins.
Exhibit 4: Domestic demand less affected by slowdown
Source: Company
Global petrochemical capacity is likely to increase by around 23% over the next 2-3 years
with significant capacity additions in China and the Middle East. The addition is set to
impact the Operating rates and Margins going forward. Thus, the current global slowdown
coupled with increasing global capacities and end of re-stocking at the downstream level
are likely to cap the Margin upside. However, we continue to believe that due to the
integrated nature of operations, RIL is likely to be lesser affected due to Margin
compression in the Petrochemical Segment.
Refining Segment
The ongoing global slowdown has resulted in demand for Petroleum products at 3.2mnbpd
in 4QFY2009. The decline in demand was more severe in the Middle Distillates Segment,
which was also noticeable from the reducing cracks in the space. However, the weak
demand did not reflect completely in the Margins as the fall in product prices lagged the
decline in crude oil prices resulting in an improvement in the benchmark Singapore
Margins on a qoq basis. Demand is expected to continue to be lower over the next few
quarters on the back of weakness in the global economy and with additional around
1.5mnbpd new refining capacity also likely to come up during the later part of year would
result into surplus capacity in turn maintaining the pressure on Margins.
April 24, 2009 5
Oil & Gas
Reliance Industries
We believe Refining Margins are likely to remain subdued going forward in the range of
US $3.5-4.0 per barrel. Moreover, weakness in heavy and light crude differential in the
Asian markets coupled with softening middle distillate cracks is likely to keep RIL’s
premium over the benchmark Singapore Margins under pressure. However, we expect
RIL to maintain its GRMs in the range of US $8.5-9.0 per barrel. However, RIL is better
placed than its peers amidst the ongoing slowdown owing to its low operating cost of
around US $2/bbl compared to industry average cost of US $5/bbl.
E&P Segment
Subdued performance of RIL’s extant businesses is more than likely to be compensated
by its E&P business. RIL has started gas production from KG-D6. Similarly, the crude
production from its MA fields, which is currently shut down, is likely to commence with
increased production of 30,000bpd. Thus, the E&P Segment is poised to deliver good set
of number in the current fiscal. However, full impact of the same will be visible in FY2011.
Moreover, we expect news flows associated with the E&P Segment to be critical
considering the fact that the extant business is likely to see subdued performance in the
near term. RIL has planned E&P activities in the prospective Cauvery, Mahanadi and
Kerala Konkan basins. Thus, any news discoveries from these blocks will provide added
upside to our valuations.
Exhibit 5: FY2010 Exploration Outlook
Source: Company
April 24, 2009 6
Oil & Gas
Reliance Industries
Valuation
RIL has successfully been able to execute its two mega ventures, viz. KG basin gas and
the RPL refinery with minimal execution problems. These ventures speak about RIL’s
successful execution capacity as KG-D6 is one the fastest deep water development across
the globe, while the RPL refinery is one of the most complex refineries. We expect these
ventures to be likely key drivers of Profitability over the next couple of years.
Commencement of gas production coupled with increased oil production is likely to
increase the share of E&P in the profit matrix in turn reducing the company’s exposure to
cyclical segments. Thus, we continue to remain positive on the future growth prospects of
the company. We maintain an Accumulate on RIL, and based on our FY2010E EPS of
Rs130.9 and Target P/E multiple of 14x, we ascribe a Fair Value of Rs1,833 on the
stock.
April 24, 2009 7
Oil & Gas
Reliance Industries
Exhibit 6: 4QFY2009 Performance
Y/E March (Rs cr) 4QFY2009 4QFY2008 %chg FY2009 FY2008 %chg
Net Operating Income 28,362 37,286 (23.9) 146,291 133,443 9.6
COGS 14,461 26,896 (46.2) 98,971 92,170 0.0
Total operating expenditure 22,925 31,268 (26.7) 122,896 110,138 11.6
EBITDA 5,437 6,018 (9.7) 23,395 23,305 0.4
EBITDA Margin (%) 19.2 16.1 16.0 17.5
Other Income 993 289 243.6 2,033 895 127.2
Depreciation 1,327 1,380 (3.8) 5,059 4,847 4.4
Interest 477 272 75.4 1,692 1,077 57.1
Extraordinary Items (370) 0 (370) 4,733
PBT 4,256 4,655 (8.6) 18,307 23,009 (20.4)
PBT Margin (%) 15.0 12.5 12.5 17.2
Total Tax 710 743 (4.4) 3,028 3,551 (14.7)
% of PBT 16.7 16.0 16.5 15.4
PAT 3,546 3,912 (9.4) 15,279 19,458 (21.5)
PAT Margin (%) 12.5 10.5 19.2 10.4 14.6
PAT without Ext. item 3,874 3,912 (1.0) 15,607 15,261 2.3
Source: Company, Angel Research
Exhibit 7: Segment-wise Performance
Y/E March (Rs cr) 4QFY2009 4QFY2008 %chg FY2009 FY2008 %chg
Revenues
Petrochemicals 9,724 14,119 (31.1) 52,767 52,999 (0.4)
Refining & Marketing 21,631 28,686 (24.6) 112,351 100,743 11.5
Oil & Gas 736 828 (11.1) 3,489 2,702 29.1
Others 210 342 (38.6) 638 778 (18.0)
Gross Revenue 32,301 43,975 (26.5) 169,245 157,222 7.6
EBIT
Petrochemicals 1,722 1,466 17.5 6,855 7,114 (3.6)
Refining & Marketing 1,953 2,839 (31.2) 9,648 10,331 (6.6)
Oil & Gas 473 447 5.8 2,226 1,503 48.1
Others 12 9 33.3 37 40 (7.5)
Total EBIT 4,160 4,761 (12.6) 18,766 18,988 (1.2)
EBIT Margin (%)
Petrochemicals 17.7 10.4 13.0 13.4
Refining & Marketing 9.0 9.9 8.6 10.3
Oil & Gas 64.3 54.0 63.8 55.6
Others 5.7 2.6 5.8 5.1
Total 12.9 10.8 11.1 12.1
Source: Company, Angel Research
April 24, 2009 8
Oil & Gas
Reliance Industries
Research Team: Tel: 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose
possession this document may come are required to observe these restrictions.
Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to
change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While every
effort is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can use
the information as the basis for any claim, demand or cause of action.
Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arrive
at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the
merits and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions -
futures, options and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studying
charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals.
We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, Angel Broking, its
subsidiaries and associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that
may prevent Angel Broking and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without
notice.
Angel Broking Limited and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of
the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect
to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions.
Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies
referred to in this report, as on the date of this report or in the past.
Sebi Registration No : INB 010996539
Price Rs1,785
Target Price Rs1,833
Investment Period 12 months
Stock Info
Sector Oil & Gas
Market Cap (Rs cr) 2,80,852
Beta 1.2
52 WK High / Low 2707/ 930
Avg. Daily Volume 1713210
Face Value (Rs) 10
BSE Sensex 11,329
Nifty 3,481
BSE Code 500325
NSE Code RELIANCE
Reuters Code RELI.BO
Bloomberg Code RIL@IN
Shareholding Pattern (%)
Promoters 49.0
MF/Banks/Indian FIs 13.8
FII/ NRIs/ OCBs 20.1
Indian Public/others 17.1
Abs. 3m 1yr 3yr
Sensex (%) 30.6 (32.2) (4.9)
RIL (%) 54.8 (30.9) 82.7
�� Lower crude, Product prices lead to Net Sales decline: Reliance
Industries’ (RIL) 4QFY2009 numbers were below our expectation on the
Top-line front while the same exceeded our expectations on the Bottom-line
front. RIL’s Top-line fell by 23.9% yoy to Rs28,362cr (Rs37,286cr) primarily
due to the 31.1% and 24.6% yoy fall in Petrochem and Refining Revenues
to Rs9,724cr and Rs21,631cr, while Net Profit (excluding Exceptional items)
fell 1.0% yoy to Rs3,874cr (Rs3,912cr). Crude processing during the quarter
was 7.79mn tonnes (8.10mn tonnes), a decline of 3.8% yoy. For FY2009,
Top-line increased by 9.6% yoy to Rs1,46,291cr (Rs1,33,443cr) on the back
of higher crude and product prices in 1HFY2009.
�� Refining Margins disappoint; Petrochemical strengthens: During the
quarter, RIL reported GRMs at US $9.9/bbl (US $15.5/bbl) as against our
expectation of US $10.5/bbl. Benchmark complex Singapore Margins,
during the quarter, stood at around US $5.4/bbl. Thus, RIL managed to earn
a spread of US $4.5/bbl, which was marginally lower than its previous
performances. Improvement in Petchem Margins, on a qoq basis, continued
in 4QFY2009 as well. Petchem Margins stood at a strong 17.7% (10.4%)
yoy. On the Core business front, blended EBIT Margins stood at 14.5%
(12.4%) during the quarter.
�� Interest Expense increases, Other Income surges: Debt at the end of
FY2009 increased substantially to Rs53,457cr (Rs36,480cr) yoy primarily on
account of increased borrowings and interest capitalisation. This increase in
debt coupled with Rupee depreciation resulted in a 75.4% yoy increase in
Interest Expenditure to Rs477cr (Rs272cr) for the quarter. Other Income
during the quarter increased significantly to Rs993cr (Rs289cr) due to higher
Interest Income on account of higher Cash and gain on sale of investments.
�� PAT declines by 1.0%: PAT during 4QFY2009 stood at Rs3,546cr
(Rs3,912cr) registering a de-growth of 9.4% yoy. However, reported PAT
was suppressed because of Exceptional Item of Rs370cr incurred towards
estimated claims on account of subsidiaries. Excluding this, PAT stood at
Rs3,874cr (Rs3,912cr), a decline of a mere 1% yoy. For FY2009, PAT after
adjusting for Exceptional Items, stood at Rs15,607cr (Rs15,261cr).
Key Financials (Consolidated)
Y/E March (Rs cr) FY2008 FY2009 FY2010E FY2011E
Net sales 137,147 155,670 200,004 229,575
% chg 20.5 13.5 28.5 14.8
Net Profit 19,521 15,520 21,511 27,098
% chg 61.7 (20.5) 38.6 26.0
EPS (Rs) 118.8 94.5 130.9 164.9
EBITDA Margin (%) 16.9 15.8 18.9 19.4
P/E (x) 13.3 18.9 13.6 10.8
RoE (%) 15.6 15.6 17.5 18.3
RoCE (%) 13.1 13.1 14.2 15.4
P/BV (x) 3.0 2.6 2.2 2.0
EV/ Sales (x) 2.2 2.1 1.5 1.3
EV/ EBITDA 13.2 13.0 9.6 6.8
Source: Company, Angel Research
Performance Highlights
Amit Vora
Tel: 022 – 4040 3800 Ext: 322
e-mail: amit.vora@angeltrade.com
Deepak Pareek
Tel: 022 – 4040 3800 Ext: 340
e-mail: deepak.pareek@angeltrade.com
April 24, 2009 2
Oil & Gas
Reliance Industries
Segment-wise Performance
Refining and Marketing (R&M): The R&M Segment delivered a subdued performance
amidst volatility in crude and product prices and demand contraction. Decline in crude oil
prices led to 24.6% yoy reduction in R&M Revenues to Rs21,631cr (Rs28,686cr). On full
year basis, R&M Revenues increased to Rs1,12,351cr (Rs1,00,743cr). Crude processing
during the quarter stood at 7.79mn tonnes (8.10mn tonnes), which was lower by 3.8%
yoy, with the company reporting capacity utilisation at 94.4%. Crude oil processed was
also lower qoq, with 7.87mn tonnes of crude processed in 3QFY2009. On the Margins
front, RIL reported lower-than-expected GRMs of US $9.9/bbl (US $15.5/bbl) as against
our expectation of US $10.5/bbl. Even for FY2009, GRMs fell to US $12.2/bbl
(US $15.0/bbl) as refinery cracks declined sharply in the second half on the back of lower
crude prices and demand contraction. Thus, during the quarter, EBIT Margins were under
pressure on a yoy basis, declining by 87bp. However, the same showed a marginal
improvement on a qoq basis.
Exhibit 1: RIL v/s Benchmark Singapore GRMs
Source: Company, Angel Research
Exhibit 2: Crude Processing and Capacity Utilisation
Source: Company, Angel Research
0
2
4
6
8
10
12
14
16
18
Q1FY06
Q2FY06
Q3FY06
Q4FY06
Q1FY07
Q2FY07
Q3FY07
Q4FY07
Q1FY08
Q2FY08
Q3FY08
Q4FY08
Q1FY09
Q2FY09
Q3FY09
Q4FY09
GRMs US $/bbl
RIL GRMs Singapore GRMs
7
7.2
7.4
7.6
7.8
8
8.2
8.4
20
40
60
80
100
120
Q1FY07
Q2FY07
Q3FY07
Q4FY07
Q1FY08
Q2FY08
Q3FY08
Q4FY08
Q1FY09
Q2FY09
Q3FY09
Q4FY09
mn tonnes
Capacity Utilisation %
Capacity Utilisation % Crude Processing mn tonnes (RHS)
April 24, 2009 3
Oil & Gas
Reliance Industries
Petrochemicals: The Petrochemical Segment Revenues fell 31.1% yoy to Rs9,724cr
(Rs14,119cr) due to lower crude and product prices on yoy basis. However during the
quarter, product deltas showed an improvement, which led to spike in EBIT Margins by
733bp to 17.7% (10.4%). Even sequentially, Margins improved by 458bp.
Exhibit 3: EBIT breakup
Source: Company, Angel Research
Other Highlights
Exploration and Production (E&P): During the quarter, RIL along with Bharat Petroleum
was awarded the deep water block KG-DWN-2005/2 under NELP VII. RIL also made two
gas discoveries during 4QFY2009, one in KG-VD3 Block and other in KG-D6 Block.
On the Production side, oil production from the KG D6 Block has yet to commence as it
was shutdown for repair works in December 2008. According to RIL, production is
expected to resume in the last week of April 2009. RIL commenced its gas production from
April 2, 2009 and effects of which on Revenues and Profitability will be seen 1QFY2010
onwards.
Increased capex towards E&P: During 4QFY2009, RIL incurred capex of Rs6,798cr,
majority of which was spent towards E&P, taking the company’s total capex to Rs24,907cr
for FY2009.
RPL Refinery commissioned: RPL, which dispatched its first parcel of refinery products
in January 2009, processed 3.6mn tonnes of crude during the quarter generating
Revenues of Rs3,678cr and Net Profit of Rs84cr.
Reliance Retail: At the end of 4QFY2009, Reliance Retail had more than 900 operational
stores (same as 3QFY2009) spread across 80 cities with 4.2mn square feet of trading
space. No new stores were opened during the quarter as RIL is in the process of
consolidating its presence in the Retail business.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
4QFY2008 1QFY2009 2QFY2009 3QFY2009 4QFY2009
Petrochemicals Refining Oil and gas Others
April 24, 2009 4
Oil & Gas
Reliance Industries
Outlook
The last six months have been a very challenging period for the company. The global
slowdown has exerted severe pressure on RIL’s benchmark Refining and Petrochemical
Margins.
Petrochemical Segment
RIL has stated that in spite of the ongoing slowdown, it has managed to improve its
cracking margins on account of fairly resilient domestic demand (72% of total demand),
which is less affected by the global slowdown. Revival in Margins could also be attributed
to the de-stocking done in the previous year, and with demand rebounding in 4QFY2009
on account of stability in the feedstock prices resulting in re-stocking at the downstream
level. Margins have particularly improved significantly in the ethylene chain. Improvement
in naphtha prices by more than 100% from its lows also resulted in propylene prices
increasing by 130%. Similarly, as the domestic demand is less affected by the slowdown,
the company was able to charge better Margins in the domestic markets over and above
the International Margins.
Exhibit 4: Domestic demand less affected by slowdown
Source: Company
Global petrochemical capacity is likely to increase by around 23% over the next 2-3 years
with significant capacity additions in China and the Middle East. The addition is set to
impact the Operating rates and Margins going forward. Thus, the current global slowdown
coupled with increasing global capacities and end of re-stocking at the downstream level
are likely to cap the Margin upside. However, we continue to believe that due to the
integrated nature of operations, RIL is likely to be lesser affected due to Margin
compression in the Petrochemical Segment.
Refining Segment
The ongoing global slowdown has resulted in demand for Petroleum products at 3.2mnbpd
in 4QFY2009. The decline in demand was more severe in the Middle Distillates Segment,
which was also noticeable from the reducing cracks in the space. However, the weak
demand did not reflect completely in the Margins as the fall in product prices lagged the
decline in crude oil prices resulting in an improvement in the benchmark Singapore
Margins on a qoq basis. Demand is expected to continue to be lower over the next few
quarters on the back of weakness in the global economy and with additional around
1.5mnbpd new refining capacity also likely to come up during the later part of year would
result into surplus capacity in turn maintaining the pressure on Margins.
April 24, 2009 5
Oil & Gas
Reliance Industries
We believe Refining Margins are likely to remain subdued going forward in the range of
US $3.5-4.0 per barrel. Moreover, weakness in heavy and light crude differential in the
Asian markets coupled with softening middle distillate cracks is likely to keep RIL’s
premium over the benchmark Singapore Margins under pressure. However, we expect
RIL to maintain its GRMs in the range of US $8.5-9.0 per barrel. However, RIL is better
placed than its peers amidst the ongoing slowdown owing to its low operating cost of
around US $2/bbl compared to industry average cost of US $5/bbl.
E&P Segment
Subdued performance of RIL’s extant businesses is more than likely to be compensated
by its E&P business. RIL has started gas production from KG-D6. Similarly, the crude
production from its MA fields, which is currently shut down, is likely to commence with
increased production of 30,000bpd. Thus, the E&P Segment is poised to deliver good set
of number in the current fiscal. However, full impact of the same will be visible in FY2011.
Moreover, we expect news flows associated with the E&P Segment to be critical
considering the fact that the extant business is likely to see subdued performance in the
near term. RIL has planned E&P activities in the prospective Cauvery, Mahanadi and
Kerala Konkan basins. Thus, any news discoveries from these blocks will provide added
upside to our valuations.
Exhibit 5: FY2010 Exploration Outlook
Source: Company
April 24, 2009 6
Oil & Gas
Reliance Industries
Valuation
RIL has successfully been able to execute its two mega ventures, viz. KG basin gas and
the RPL refinery with minimal execution problems. These ventures speak about RIL’s
successful execution capacity as KG-D6 is one the fastest deep water development across
the globe, while the RPL refinery is one of the most complex refineries. We expect these
ventures to be likely key drivers of Profitability over the next couple of years.
Commencement of gas production coupled with increased oil production is likely to
increase the share of E&P in the profit matrix in turn reducing the company’s exposure to
cyclical segments. Thus, we continue to remain positive on the future growth prospects of
the company. We maintain an Accumulate on RIL, and based on our FY2010E EPS of
Rs130.9 and Target P/E multiple of 14x, we ascribe a Fair Value of Rs1,833 on the
stock.
April 24, 2009 7
Oil & Gas
Reliance Industries
Exhibit 6: 4QFY2009 Performance
Y/E March (Rs cr) 4QFY2009 4QFY2008 %chg FY2009 FY2008 %chg
Net Operating Income 28,362 37,286 (23.9) 146,291 133,443 9.6
COGS 14,461 26,896 (46.2) 98,971 92,170 0.0
Total operating expenditure 22,925 31,268 (26.7) 122,896 110,138 11.6
EBITDA 5,437 6,018 (9.7) 23,395 23,305 0.4
EBITDA Margin (%) 19.2 16.1 16.0 17.5
Other Income 993 289 243.6 2,033 895 127.2
Depreciation 1,327 1,380 (3.8) 5,059 4,847 4.4
Interest 477 272 75.4 1,692 1,077 57.1
Extraordinary Items (370) 0 (370) 4,733
PBT 4,256 4,655 (8.6) 18,307 23,009 (20.4)
PBT Margin (%) 15.0 12.5 12.5 17.2
Total Tax 710 743 (4.4) 3,028 3,551 (14.7)
% of PBT 16.7 16.0 16.5 15.4
PAT 3,546 3,912 (9.4) 15,279 19,458 (21.5)
PAT Margin (%) 12.5 10.5 19.2 10.4 14.6
PAT without Ext. item 3,874 3,912 (1.0) 15,607 15,261 2.3
Source: Company, Angel Research
Exhibit 7: Segment-wise Performance
Y/E March (Rs cr) 4QFY2009 4QFY2008 %chg FY2009 FY2008 %chg
Revenues
Petrochemicals 9,724 14,119 (31.1) 52,767 52,999 (0.4)
Refining & Marketing 21,631 28,686 (24.6) 112,351 100,743 11.5
Oil & Gas 736 828 (11.1) 3,489 2,702 29.1
Others 210 342 (38.6) 638 778 (18.0)
Gross Revenue 32,301 43,975 (26.5) 169,245 157,222 7.6
EBIT
Petrochemicals 1,722 1,466 17.5 6,855 7,114 (3.6)
Refining & Marketing 1,953 2,839 (31.2) 9,648 10,331 (6.6)
Oil & Gas 473 447 5.8 2,226 1,503 48.1
Others 12 9 33.3 37 40 (7.5)
Total EBIT 4,160 4,761 (12.6) 18,766 18,988 (1.2)
EBIT Margin (%)
Petrochemicals 17.7 10.4 13.0 13.4
Refining & Marketing 9.0 9.9 8.6 10.3
Oil & Gas 64.3 54.0 63.8 55.6
Others 5.7 2.6 5.8 5.1
Total 12.9 10.8 11.1 12.1
Source: Company, Angel Research
April 24, 2009 8
Oil & Gas
Reliance Industries
Research Team: Tel: 4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com
DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Persons into whose
possession this document may come are required to observe these restrictions.
Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to
change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While every
effort is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can use
the information as the basis for any claim, demand or cause of action.
Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arrive
at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the
merits and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions -
futures, options and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studying
charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals.
We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, Angel Broking, its
subsidiaries and associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that
may prevent Angel Broking and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without
notice.
Angel Broking Limited and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of
the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect
to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions.
Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies
referred to in this report, as on the date of this report or in the past.
Sebi Registration No : INB 010996539
VIRGIN GALACTIC ROLLS OUT MOTHERSHIP “EVE”
WhiteKnightTwo launch vehicle for SpaceShipTwo heralds a new era in aerospace fuel efficiency,
performance and versatility
Mojave Air and Spaceport, California
July 28th 2008
Virgin Founder, Sir Richard Branson and SpaceShipOne designer, Burt Rutan, today pulled back the
hangar doors on the new WhiteKnightTwo (WK2) carrier aircraft that will ferry SpaceShipTwo and
thousands of private astronauts, science packages and payload on the first stage of the Virgin
Galactic sub‐orbital space experience.
The rollout represents another major milestone in Virgin Galactic’s quest to launch the world’s first
private, environmentally benign, space access system for people, payload and science.
Christened “EVE” in honor of Sir Richard’s mother, who performed the official naming ceremony,
WK2 is both visually remarkable and represents ground‐breaking aerospace technology. It is the
world’s largest all carbon composite aircraft and many of its component parts have been built using
composite materials for the very first time. At 140 ft, the wing spar is the longest single carbon
composite aviation component ever manufactured.
Driven by a demanding performance specification set by Virgin Galactic, WK2 has a unique heavy lift,
high altitude capability and an open architecture driven design which provides for maximum
versatility in the weight, mass and volume of its payload potential. It has the power, strength and
maneuverability to provide for pre space‐flight, positive G force and zero G astronaut training as well
as a lift capability which is over 30% greater than that represented by a fully crewed SpaceShipTwo.
The vehicle has a maximum altitude over 50,000 ft and its U.S. coast‐to‐coast range will allow the
spaceship to be ferried on long duration flights.
An all carbon composite vehicle of this size represents a giant leap for a material technology that has
already been identified as a key contributor to the increasingly urgent requirement by the
commercial aviation sector for dramatically more fuel efficient aircraft. Powered by four Pratt and
Whitney PW308A engines, which are amongst the most powerful, economic and efficient available,
WK2 is a mold breaker in carbon efficiency and the epitome of 21st century aerospace design and
technology.
The twin fuselage and central payload area configuration allow for easy access to WK2 and to the
spaceship for passengers and crew; the design also aids operational efficiencies and turnaround
times. WK2 will be able to support up to four daily space flights, is able to carry out both day and
night time operations and is equipped with a package of highly advanced avionics.
Large numbers of VIP’s, media and more than 100 fully signed‐up future Virgin Galactic astronauts
flew into Mojave for the rollout onboard a new Airbus A320 aircraft specially chartered from Virgin
America, the youngest and most efficient US domestic airline, which launched to great acclaim in
2007.
Rutan’s Scaled Composites facility has been strictly out of bounds whilst design and construction has
been underway, but guests today were additionally given a tantalizing preview of SpaceShipTwo,
clearly visible but heavily shrouded and well on its way to completion, in the smaller of Scaled’s two
hangars awaiting its own rollout in 2009. This will be scheduled once WK2 is at the appropriate stage
in its extensive test program, which has already begun with ground tests; it is expected to take its first
flight in the fall of 2008. The flight test program will be comprehensive even before SpaceShipTwo is
carried as a payload for the first time in 2009.
Commenting on the rollout, Burt Rutan, Founder of Scaled Composites said:
“WhiteKnightTwo represents the apogee of the application of carbon composites to aerospace and
all of us at Scaled are tremendously excited at the capabilities of the Mothership for SpaceShipTwo. I
believe the vehicle will be developed and sold for a variety of launch applications beyond the initial
requirements of our launch customer, Virgin Galactic. We have set up a new business jointly with
Virgin, The Spaceship Company (TSC), to develop these vehicles and we very much hope that its
efficiency will herald a wake up call to the aerospace industry and the necessity of using new
materials and technologies in the future. “
Sir Richard Branson, Founder of Virgin Galactic added:
“As usual, Burt and the Scaled team have created a beauty and this is a very proud day for us all. The
rollout of WhiteKnightTwo takes the Virgin Galactic vision to the next level and continues to provide
tangible evidence that this most ambitious of projects is not only for real but is making tremendous
progress towards our goal of safe commercial operation.
Virgin Galactic is central to our ambition at Virgin to become the world’s leading group in the
operation of energy and environmentally efficient transportation, in the air, on the ground and in
space. We arrived here this morning on an aircraft operated by Virgin America, who run the most fuel
efficient commercial fleet in the US, to roll out what by most definitions, is the most energy efficient
aircraft in history. We are naming it EVE after my Mother, Eve Branson but also because it represents
a first and a new beginning, the chance for our ever growing group of future astronauts and other
scientists and payload specialists to see our world in a completely new light. I for one can’t wait!”
For further information go to www.virgingalactic.com.
For downloadable images and graphics go to www.virgingalactic.com/press
performance and versatility
Mojave Air and Spaceport, California
July 28th 2008
Virgin Founder, Sir Richard Branson and SpaceShipOne designer, Burt Rutan, today pulled back the
hangar doors on the new WhiteKnightTwo (WK2) carrier aircraft that will ferry SpaceShipTwo and
thousands of private astronauts, science packages and payload on the first stage of the Virgin
Galactic sub‐orbital space experience.
The rollout represents another major milestone in Virgin Galactic’s quest to launch the world’s first
private, environmentally benign, space access system for people, payload and science.
Christened “EVE” in honor of Sir Richard’s mother, who performed the official naming ceremony,
WK2 is both visually remarkable and represents ground‐breaking aerospace technology. It is the
world’s largest all carbon composite aircraft and many of its component parts have been built using
composite materials for the very first time. At 140 ft, the wing spar is the longest single carbon
composite aviation component ever manufactured.
Driven by a demanding performance specification set by Virgin Galactic, WK2 has a unique heavy lift,
high altitude capability and an open architecture driven design which provides for maximum
versatility in the weight, mass and volume of its payload potential. It has the power, strength and
maneuverability to provide for pre space‐flight, positive G force and zero G astronaut training as well
as a lift capability which is over 30% greater than that represented by a fully crewed SpaceShipTwo.
The vehicle has a maximum altitude over 50,000 ft and its U.S. coast‐to‐coast range will allow the
spaceship to be ferried on long duration flights.
An all carbon composite vehicle of this size represents a giant leap for a material technology that has
already been identified as a key contributor to the increasingly urgent requirement by the
commercial aviation sector for dramatically more fuel efficient aircraft. Powered by four Pratt and
Whitney PW308A engines, which are amongst the most powerful, economic and efficient available,
WK2 is a mold breaker in carbon efficiency and the epitome of 21st century aerospace design and
technology.
The twin fuselage and central payload area configuration allow for easy access to WK2 and to the
spaceship for passengers and crew; the design also aids operational efficiencies and turnaround
times. WK2 will be able to support up to four daily space flights, is able to carry out both day and
night time operations and is equipped with a package of highly advanced avionics.
Large numbers of VIP’s, media and more than 100 fully signed‐up future Virgin Galactic astronauts
flew into Mojave for the rollout onboard a new Airbus A320 aircraft specially chartered from Virgin
America, the youngest and most efficient US domestic airline, which launched to great acclaim in
2007.
Rutan’s Scaled Composites facility has been strictly out of bounds whilst design and construction has
been underway, but guests today were additionally given a tantalizing preview of SpaceShipTwo,
clearly visible but heavily shrouded and well on its way to completion, in the smaller of Scaled’s two
hangars awaiting its own rollout in 2009. This will be scheduled once WK2 is at the appropriate stage
in its extensive test program, which has already begun with ground tests; it is expected to take its first
flight in the fall of 2008. The flight test program will be comprehensive even before SpaceShipTwo is
carried as a payload for the first time in 2009.
Commenting on the rollout, Burt Rutan, Founder of Scaled Composites said:
“WhiteKnightTwo represents the apogee of the application of carbon composites to aerospace and
all of us at Scaled are tremendously excited at the capabilities of the Mothership for SpaceShipTwo. I
believe the vehicle will be developed and sold for a variety of launch applications beyond the initial
requirements of our launch customer, Virgin Galactic. We have set up a new business jointly with
Virgin, The Spaceship Company (TSC), to develop these vehicles and we very much hope that its
efficiency will herald a wake up call to the aerospace industry and the necessity of using new
materials and technologies in the future. “
Sir Richard Branson, Founder of Virgin Galactic added:
“As usual, Burt and the Scaled team have created a beauty and this is a very proud day for us all. The
rollout of WhiteKnightTwo takes the Virgin Galactic vision to the next level and continues to provide
tangible evidence that this most ambitious of projects is not only for real but is making tremendous
progress towards our goal of safe commercial operation.
Virgin Galactic is central to our ambition at Virgin to become the world’s leading group in the
operation of energy and environmentally efficient transportation, in the air, on the ground and in
space. We arrived here this morning on an aircraft operated by Virgin America, who run the most fuel
efficient commercial fleet in the US, to roll out what by most definitions, is the most energy efficient
aircraft in history. We are naming it EVE after my Mother, Eve Branson but also because it represents
a first and a new beginning, the chance for our ever growing group of future astronauts and other
scientists and payload specialists to see our world in a completely new light. I for one can’t wait!”
For further information go to www.virgingalactic.com.
For downloadable images and graphics go to www.virgingalactic.com/press
A Fresh Direction for Virgin Mobile Australia
Online Growth; Member Benefits; New Look and Feel
Sydney, 29th Sept 2009 – It’s nicer to be treated like a member than be reminded
you’re a customer. Virgin Mobile Australia (VMA) made a number of major
announcements today revealing a new web presence and concept store. Virgin
Mobile also unveiled an exciting new brand platform, new look and feel and a
refreshed approach moving forward.
Virgin Mobile is investing in the customer experience like never before. Major
investments into customer service areas have seen complaints reduced by 25% -
more than any other telco in Australia.
In a nutshell, Virgin Mobile Australia (VMA) is changing how it does things and it is
excited.
Business Growth: Leading Online Presence and New Concept Store
About to sign up its one-millionth customer, Virgin Mobile is growing and will soon be
seen in more places than ever before both online and offline.
Virgin Mobile members interact more online than any other telco, with mobile
broadband and Internet-enabled mobile phone services making the web more
intrinsic to their everyday life. In response to this, Virgin Mobile has increased its
focus on building a robust and engaging online presence.
The first stage of this, is the refresh of the www.virginmobile.com.au website and the
addition of the Members Lounge portal. The second stage will be the relaunch of the
Virgin Mobile e-shop later this year. It will be easier to navigate than ever before,
offering new and existing members an improved online retail experience.
Supporting its increasing online presence, Virgin Mobile launched its first concept
store on Pitt Street in Sydney today. Over the past few years, Virgin Mobile has
doubled its retail footprint adding 13 kiosk in 2008. Virgin Mobile will continue to
expand its retail footprint in Australia using the new store concept unveiled today.
The new Sydney hero store is designed using the latest interactive technology.
Touch screens allow customers to easily browse and compare handset features as
well as interact with the brand and the Members Lounge. Live handsets will enable
customers to experience the features of the various phones on offer.
New brand platform – Members Welcome
Building on its existing Virgin philosophy of putting the customer at the heart of
everything, Virgin Mobile is launching a refreshing new ‘Members Welcome’ brand
strategy. This will see Virgin Mobile customers treated like members of a club with
membership perks - not just at sign-up but for the lifetime of their membership.
These benefits range from Virgin brand family offers to exclusive discounts, VIP
access to music gigs and even free beer on Fridaysi. Cheers.
Peter Bithos, CEO of Virgin Mobile Australia said, “We believe there’s an opportunity
for a mobile company that values its customers more and treats them better, whilst
still providing great value. At Virgin Mobile we want a relationship with our members
that goes beyond the transactional one.”
“We want to dial up our connection with them, engaging with members more online
and in areas of interest outside of their mobile phone. Our existing customers are just
as important to us as new ones so we’re excited to introduce a host of benefits that
make being a loyal Virgin Mobile member even more rewarding.”
Virgin family perks will allow VMA members to benefit from a host of different Virgin
offers, such as Velocity points, 10% back on Virgin Blue flights and more. With
VMA’s new benefits plus ongoing unlimited free mobile talk & text 24/7 between
membersii, VMA members will be able to connect with other members more easily.
Virgin Mobile has also secured an exclusive partnership with discount live
entertainment ticket provider Lasttix.com.au. Virgin Mobile Members will jump the
queue for priority Lasttix tickets to Live Music, Performing Arts, Comedy, Family, and
Sport – another great benefit accessible through www.MembersLounge.com.au.
The Members Lounge
Along with these new member benefits, Virgin Mobile has launched a new Members’
Lounge portal (www.MembersLounge.com.au) on its website. Not just a website, but
a destination, the Members Lounge is a digital space where members can go to view
exclusive content, read bar and restaurant reviews, get special access to gigs and
events, not to mention claim lots of great member benefits and exclusive offers.
Non-members can use a ‘guest pass’ to have a sneak peak at the Members Lounge
but only VMA members will have full access to the exclusive content and benefits on
offer.
Follow Members Lounge on Twitter to receive the latest news and member offers
from Virgin Mobile.
Brand new look and feel
There would be no point in Virgin Mobile changing the way it does things without
changing the way it looks, so as of this month you will see a whole new look for
Virgin Mobile Australia. Starting with its new website www.virginmobile.com.au and
moving right through to all of its point of sale, new store design and, in a nutshell,
everything it does.
The refreshed Virgin Mobile website (www.VirginMobile.com.au) includes a new,
simple to understand format for products and services as well as plan comparison
tools to make checking, updating or changing your plan even easier.
VMA will be producing a monthly magazine with the latest offers, handsets, plans
and lifestyle content, available through the stores or by mail on request.
Virgin Mobile Metro
Exciting news for Sydney-based members is the sponsorship of Sydney’s
contemporary music venue The Virgin Mobile Metro, giving members exclusive
tickets and VIP benefits to this iconic music venue. This sponsorship is part of Virgin
Mobile Australia’s ongoing commitment to music by providing customers with special
access to gigs and festivals.
New Campaign
Tying it all together is the new campaign all around members and the benefits they
get. This highlights Virgin Mobile member benefits such as 10% back on Virgin Blue
flights, free beers on Friday, free voicemail (Virgin Mobile is the only telco in Australia
to offer this) and VIP gig access.
Revealing a new creative direction for Virgin Mobile, the TVC is shot like a film clip
with a contemporary, ‘music video’ edge and energy. It is a completely different look
and feel to anything Virgin Mobile have done before and will no doubt appeal to a
wide audience of music lovers.
Peter Bithos said, “Virgin Mobile is always looking for further ways to provide
members with a more rewarding experience, whether that’s in terms of coverage,
getting online, the latest technology and handsets, access to stores or unique
benefits that only the Virgin brand can provide.”
~ ENDS ~
For more information or to arrange an interview please contact:
Jess Makin – One Green Bean – jess@onegreenbean.com.au or 0416 292 912
Rob Lowe – One Green Bean – rob@onegreenbean.com.au or 9699 9503
i Free beer on Fridays is being trialled in NSW in October 2009 with a view to rolling out
nationally by the end of the year
ii Pre-Paid needs 1c balance. All rates apply in Oz
Sydney, 29th Sept 2009 – It’s nicer to be treated like a member than be reminded
you’re a customer. Virgin Mobile Australia (VMA) made a number of major
announcements today revealing a new web presence and concept store. Virgin
Mobile also unveiled an exciting new brand platform, new look and feel and a
refreshed approach moving forward.
Virgin Mobile is investing in the customer experience like never before. Major
investments into customer service areas have seen complaints reduced by 25% -
more than any other telco in Australia.
In a nutshell, Virgin Mobile Australia (VMA) is changing how it does things and it is
excited.
Business Growth: Leading Online Presence and New Concept Store
About to sign up its one-millionth customer, Virgin Mobile is growing and will soon be
seen in more places than ever before both online and offline.
Virgin Mobile members interact more online than any other telco, with mobile
broadband and Internet-enabled mobile phone services making the web more
intrinsic to their everyday life. In response to this, Virgin Mobile has increased its
focus on building a robust and engaging online presence.
The first stage of this, is the refresh of the www.virginmobile.com.au website and the
addition of the Members Lounge portal. The second stage will be the relaunch of the
Virgin Mobile e-shop later this year. It will be easier to navigate than ever before,
offering new and existing members an improved online retail experience.
Supporting its increasing online presence, Virgin Mobile launched its first concept
store on Pitt Street in Sydney today. Over the past few years, Virgin Mobile has
doubled its retail footprint adding 13 kiosk in 2008. Virgin Mobile will continue to
expand its retail footprint in Australia using the new store concept unveiled today.
The new Sydney hero store is designed using the latest interactive technology.
Touch screens allow customers to easily browse and compare handset features as
well as interact with the brand and the Members Lounge. Live handsets will enable
customers to experience the features of the various phones on offer.
New brand platform – Members Welcome
Building on its existing Virgin philosophy of putting the customer at the heart of
everything, Virgin Mobile is launching a refreshing new ‘Members Welcome’ brand
strategy. This will see Virgin Mobile customers treated like members of a club with
membership perks - not just at sign-up but for the lifetime of their membership.
These benefits range from Virgin brand family offers to exclusive discounts, VIP
access to music gigs and even free beer on Fridaysi. Cheers.
Peter Bithos, CEO of Virgin Mobile Australia said, “We believe there’s an opportunity
for a mobile company that values its customers more and treats them better, whilst
still providing great value. At Virgin Mobile we want a relationship with our members
that goes beyond the transactional one.”
“We want to dial up our connection with them, engaging with members more online
and in areas of interest outside of their mobile phone. Our existing customers are just
as important to us as new ones so we’re excited to introduce a host of benefits that
make being a loyal Virgin Mobile member even more rewarding.”
Virgin family perks will allow VMA members to benefit from a host of different Virgin
offers, such as Velocity points, 10% back on Virgin Blue flights and more. With
VMA’s new benefits plus ongoing unlimited free mobile talk & text 24/7 between
membersii, VMA members will be able to connect with other members more easily.
Virgin Mobile has also secured an exclusive partnership with discount live
entertainment ticket provider Lasttix.com.au. Virgin Mobile Members will jump the
queue for priority Lasttix tickets to Live Music, Performing Arts, Comedy, Family, and
Sport – another great benefit accessible through www.MembersLounge.com.au.
The Members Lounge
Along with these new member benefits, Virgin Mobile has launched a new Members’
Lounge portal (www.MembersLounge.com.au) on its website. Not just a website, but
a destination, the Members Lounge is a digital space where members can go to view
exclusive content, read bar and restaurant reviews, get special access to gigs and
events, not to mention claim lots of great member benefits and exclusive offers.
Non-members can use a ‘guest pass’ to have a sneak peak at the Members Lounge
but only VMA members will have full access to the exclusive content and benefits on
offer.
Follow Members Lounge on Twitter to receive the latest news and member offers
from Virgin Mobile.
Brand new look and feel
There would be no point in Virgin Mobile changing the way it does things without
changing the way it looks, so as of this month you will see a whole new look for
Virgin Mobile Australia. Starting with its new website www.virginmobile.com.au and
moving right through to all of its point of sale, new store design and, in a nutshell,
everything it does.
The refreshed Virgin Mobile website (www.VirginMobile.com.au) includes a new,
simple to understand format for products and services as well as plan comparison
tools to make checking, updating or changing your plan even easier.
VMA will be producing a monthly magazine with the latest offers, handsets, plans
and lifestyle content, available through the stores or by mail on request.
Virgin Mobile Metro
Exciting news for Sydney-based members is the sponsorship of Sydney’s
contemporary music venue The Virgin Mobile Metro, giving members exclusive
tickets and VIP benefits to this iconic music venue. This sponsorship is part of Virgin
Mobile Australia’s ongoing commitment to music by providing customers with special
access to gigs and festivals.
New Campaign
Tying it all together is the new campaign all around members and the benefits they
get. This highlights Virgin Mobile member benefits such as 10% back on Virgin Blue
flights, free beers on Friday, free voicemail (Virgin Mobile is the only telco in Australia
to offer this) and VIP gig access.
Revealing a new creative direction for Virgin Mobile, the TVC is shot like a film clip
with a contemporary, ‘music video’ edge and energy. It is a completely different look
and feel to anything Virgin Mobile have done before and will no doubt appeal to a
wide audience of music lovers.
Peter Bithos said, “Virgin Mobile is always looking for further ways to provide
members with a more rewarding experience, whether that’s in terms of coverage,
getting online, the latest technology and handsets, access to stores or unique
benefits that only the Virgin brand can provide.”
~ ENDS ~
For more information or to arrange an interview please contact:
Jess Makin – One Green Bean – jess@onegreenbean.com.au or 0416 292 912
Rob Lowe – One Green Bean – rob@onegreenbean.com.au or 9699 9503
i Free beer on Fridays is being trialled in NSW in October 2009 with a view to rolling out
nationally by the end of the year
ii Pre-Paid needs 1c balance. All rates apply in Oz
Optus merges Virgin Mobile Australia and SIMplus
Optus Chief Executive Paul O'Sullivan announced today the planned operational integration of two
wholly-owned Optus subsidiaries, Virgin Mobile Australia (VMA) and SIMplus Mobile.
“VMA has one of the strongest prepaid offerings in the market and SIMplus has strengths in the
post paid market through varied sales channels,” Mr O’Sullivan said.
“Synergies between the two companies are strong and in the highly competitive mobile market,
combining these operations makes good business sense.
“The integration supports Optus’ strategy to strengthen its mobile market position and provides a
solid foundation for future growth of the Virgin Mobile brand,” Mr O’Sullivan said.
Mr Matt Davey has been appointed Chief Executive of the combined operation. Mr Davey replaces
Jonathan Marchbank who has decided to pursue a new opportunity.
“I would like to thank Jonathan. He has been a great supporter of Optus’ acquisition of VMA and
working towards taking VMA into its next phase,” Mr O’Sullivan said.
SIMplus Managing Director, Keir Preedy will work with Mr Davey to oversee the realisation of
the business benefits of the two companies as acting Chief Operating Officer.
Mr Davey recently returned from a eight month posting with Globe Telecom in the Philippines, a
SingTel Group company, where he helped establish the small business group.
Mr Davey has been with Optus for over nine years working in the Consumer and Small Business
Customer Facing Units. He has extensive telecommunications experience in the prepaid and post
paid consumer and business markets.
“Optus is pleased to have secured someone with such extensive knowledge of the mobile industry
to lead the new VMA,” Mr O’Sullivan said.
“Matt will provide strong leadership during the transition of the company and drive VMA on to
further success as it expands its product range.”
Mr Davey will begin immediately, reporting to Paul O’Sullivan.
Both companies will remain as separate legal entities.
Media contact:
Simone Bergholcs
Optus Corporate Affairs
Tel: (02) 9342 7846
Media Release
3 February 2006
Media Release
3 February 2006 2 of 2
Media Release
Note to editor:
About Virgin Mobile Australia
Virgin Mobile Australia is a leading consumer focused mobile operator with its headquarters in
Sydney and stores in Sydney, Brisbane & Melbourne.
Following a successful launch in October 2000, Virgin Mobile Australia has continued to achieve
strong growth and now has over 500,000 customers, employs over 300 people.
Virgin is one of the most recognised brands globally, representing strong customer focus and good
value for money.
About SIMplus Mobile
SIMplus Mobile is one of the largest service providers of the Optus Network in Australia.
SIMplus Mobile is dedicated to offering uncomplicated, value-driven mobile solutions that put the
customer in control. This is achieved through easy to understand plans, competitive call rates, a
dependable network service and simple billing and payment options.
With more than 4,100 base stations, the Optus Network is committed to providing coverage where
and when it is needed, currently offering coverage to more than 96 per cent of the Australian
population.
wholly-owned Optus subsidiaries, Virgin Mobile Australia (VMA) and SIMplus Mobile.
“VMA has one of the strongest prepaid offerings in the market and SIMplus has strengths in the
post paid market through varied sales channels,” Mr O’Sullivan said.
“Synergies between the two companies are strong and in the highly competitive mobile market,
combining these operations makes good business sense.
“The integration supports Optus’ strategy to strengthen its mobile market position and provides a
solid foundation for future growth of the Virgin Mobile brand,” Mr O’Sullivan said.
Mr Matt Davey has been appointed Chief Executive of the combined operation. Mr Davey replaces
Jonathan Marchbank who has decided to pursue a new opportunity.
“I would like to thank Jonathan. He has been a great supporter of Optus’ acquisition of VMA and
working towards taking VMA into its next phase,” Mr O’Sullivan said.
SIMplus Managing Director, Keir Preedy will work with Mr Davey to oversee the realisation of
the business benefits of the two companies as acting Chief Operating Officer.
Mr Davey recently returned from a eight month posting with Globe Telecom in the Philippines, a
SingTel Group company, where he helped establish the small business group.
Mr Davey has been with Optus for over nine years working in the Consumer and Small Business
Customer Facing Units. He has extensive telecommunications experience in the prepaid and post
paid consumer and business markets.
“Optus is pleased to have secured someone with such extensive knowledge of the mobile industry
to lead the new VMA,” Mr O’Sullivan said.
“Matt will provide strong leadership during the transition of the company and drive VMA on to
further success as it expands its product range.”
Mr Davey will begin immediately, reporting to Paul O’Sullivan.
Both companies will remain as separate legal entities.
Media contact:
Simone Bergholcs
Optus Corporate Affairs
Tel: (02) 9342 7846
Media Release
3 February 2006
Media Release
3 February 2006 2 of 2
Media Release
Note to editor:
About Virgin Mobile Australia
Virgin Mobile Australia is a leading consumer focused mobile operator with its headquarters in
Sydney and stores in Sydney, Brisbane & Melbourne.
Following a successful launch in October 2000, Virgin Mobile Australia has continued to achieve
strong growth and now has over 500,000 customers, employs over 300 people.
Virgin is one of the most recognised brands globally, representing strong customer focus and good
value for money.
About SIMplus Mobile
SIMplus Mobile is one of the largest service providers of the Optus Network in Australia.
SIMplus Mobile is dedicated to offering uncomplicated, value-driven mobile solutions that put the
customer in control. This is achieved through easy to understand plans, competitive call rates, a
dependable network service and simple billing and payment options.
With more than 4,100 base stations, the Optus Network is committed to providing coverage where
and when it is needed, currently offering coverage to more than 96 per cent of the Australian
population.
Subscribe to:
Posts (Atom)
