in

RIL Q4 results: Profit plunges 39% YoY to Rs 6,348 crore, misses Street estimates

1588255025_photo.jpg


NEW DELHI: Reliance Industries (RIL) on Thursday reported a 38.73 per cent year-on-year (YoY) fall in consolidated net profit at Rs 6,348 crore for the quarter ended March 31. Analysts in an ETNow poll had projected the number at Rs 10,500 crore.

Consolidated revenue from operation declined 2.30 per cent YoY to Rs 1.39 lakh crore.

The company also announced India’s biggest rights issue of Rs 53,125 crore in the ratio of 1:15 at a price of Rs 1,257 per share. “The rights issue will enable participation of all shareholders in the growth business of RIL. Promoters will subscribe their full entitlement of the rights issue and also to all the unsubscribed portion,” the oil-to-telecom major said.

Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, “Despite the daunting challenges arising from the fallout of the global pandemic, our company has once again delivered a resilient performance for FY 2019-20. Our O2C (Oil to Chemicals) businesses delivered sustained earnings due to its integrated portfolio, cost-competitiveness, feedstock flexibility and product placement capabilities. We continue to operate all our major facilities at near normal utilisation levels.”

The firm recommended a dividend of Rs 6.50 per equity share for the financial year ended March 31.

RIL said the fallout of Covid-19 outbreak on economic activity disrupted businesses across manufacturing and services sectors during the quarter. Global oil markets witnessed significant volatility on account of demand destruction and excess supplies. Lockdowns and travel restrictions in most geographies led to steep fall in transportation fuel demand.

Telecom Business

RIL’s telecom arm Reliance Jio Infocomm reported a 177.50 per cent YoY and 72.70 per cent QoQ growth in net profit at Rs 2,331 crore.

Its subscriber base grew 26.30 per cent YoY to 387.50 million, with each user spending an average of Rs 130.60 a month during the quarter, the company said in a statement.

“Jio is embarking on the next leg of growth with a path-defining partnership with one of the world’s largest digital companies, Facebook,” said Ambani.

Zero-debt plans
RIL’s outstanding debt as of March 31, 2020 stood at Rs 3,36,294 crore, while cash and cash equivalents was at Rs 1,75,259 crore.

The company is expected to complete the capital raising programme totaling over Rs 1.04 lakh crore by Q1 of the current financial year. This includes the investment by Facebook in Jio Platforms, the upcoming rights issue and the previous investment by British Petroleum in FY2019-20.

In addition to the Facebook investment, the company has received strong interest from other strategic and financial investors and is likely to announce a similar sized investment in the coming months.

“With a strong visibility to equity infusions, the board was informed that RIL is set to achieve net zero debt status ahead of its own aggressive timeline,” it said.

More to come…



Source link

Written by sortiwa

Premier League asks US to keep Saudi Arabia on ‘piracy’ watch list | Football

afternoon-nap_759.jpg

Can afternoon naps help with weight loss?