« Tsunami Victims, Selling Kidneys and Relief Effort | Main | Online Child Pornography: Microsoft Helping India to Fight »

Jan19
Good News for Reliance: Bad News for Analysts
Reliance is the largest private company in India. Energy business is the major business of the company. In refines crude oil and produce various petrochemical products. In the third quarter Reliance had crossed their estimated profit margin. The surprising news is that analysts made huge mistakes in reflecting the actual profit margin. I am quoting from the news published in The Times of India:

 

 

On Thursday evening, over 40 equity analysts sat unusually quiet at a meeting called by Reliance officials at the President Hotel to explain the company's third quarter results.

 

 

The analysts simply couldn't believe they could all go so terribly wrong in predicting the company's quarterly results.

 

 

The analysts had estimated the quarter's net profit at Rs 2,200 crore, but they missed the actual figure by a wide margin.

 

 

Reliance's Rs 2,800 crore profit was Rs 750 crore higher than the DSP Merrill Lynch estimate and Rs 650 crore more than what HSBC prediction.

 

 

 

 

Equity analysts are very highly paid for their jobs. Based on their advice big companies invest in various businesses. Such a mistake from them is very shameful. A third of Reliance’s profit comes from refining. As the popular refining margins around the world were going down analysts did not expect that Reliance’s refinery would shot upwards. Reliance’s refining margins went up to $11.7 from $9.1 in this quarter. Reliance officials contributed this success to their Jamnagar Refining Complex. It is designed to process all kinds of crude oil. 

 

 

There is a famous saying “To err is human.” The HSBC and Merill Lynch Analysts may be very highly qualified but they are human as well. Moreover, the way I see it Reliance has made an unexpected profit. Expected and unexpected, profit is the main goal of all business. Hence, Reliance should be happy. What do you think?

 

 

Related articles:

 

The Times of India

 


1 Comments/Trackbacks




Good News for Reliance is also bad news not only for the analysts, but also for the consumers. Of course, here I am refering to Reliance Infocomm and not Reliance Industries. Visit the link below for the full story.
http://reliancemobilevictimsblog.blogspot.com/

submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Tsunami Victims, Selling Kidneys and Relief Effort | Main | Online Child Pornography: Microsoft Helping India to Fight »

Advertise

Related Resources

recent comments

    sponsored ads



    subscribe


    Prefer Email?
    Subscribe below-

    Enter your Email:


    Powered by FeedBlitz What's this?

    Current News

    Support This Blog

    blogroll


    My site was nominated for Best Business Blog!

    business social media

    Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

    BIZZlogos - Add your logo - free link to your site
    BIZZphotos - Add photos of your products and people
    BIZZprofiles - Submit your profile and build your online visibility
    BIZZspotlight - Spotlight your business with free links
    BIZZvideos - Videos about businesses, products and business people.
    BIZZbites - "Digg" for Business - Submit your articles and posts

    Know More Media - International Business

    know more media network

    View Network Map

    Network Feed List (OPML)

    Know More Media Network
    Feed


    we support unitus

    PRWeb

    Influencer



    IndianRaj is a member of the Know More Media network of business related blogs.

    Here are some current headlines from some of our business publications:

    ProductivityGoal

    CallCenterScript

    AdHurl

    TheBizofKnowledge

    LandingTheDeal

    CustomersAreAlways

    HealthCareVox

    BrainBasedBusiness

    TheInsurancePolicy

    MarketingBlurb