Reliance Industries missed its estimates as it posted a decline in consolidated net profit of 38.73 percent year-on-year (YoY).
For the quarter ended March 31, the company posted a consolidated net profit of Rs 6,348 crore, while analysts had estimated the amount to Rs 10,500 crore.
RIL reported revenues of Rs 1.51.209 crore for the quarter ended March, a 2.5 percent decline from a year earlier, mainly due to a 10.1 percent decline in company revenues for refining and petrochemicals.
Key Highlights-
- Jio Subscriber base as on 31st March 2020 was at 387.5 million
- Reliance Jio net profit was at Rs 2,331 crore, revenue was Rs 14,835 crore.
- Retail Revenue at Rs 38,211 crore with a profit of Rs.2556 crore
- RIL’s consolidated revenue for the full year increased to Rs 659,205 crore.
- RIL annual EBITDA crosses Rs 1 lakh crore mark in FY20
- Strong investor interest in Jio Platforms – To receive 43,574 Crores from Facebook for a 9.99% Stake.
- Jio Platforms also receives interest from other global investors for a similar-sized additional stake.
Jio shines
- Reliance Jio Infocomm posted a near tripling of net profit for the period January-March, backed by tariff increases that helped to increase its average revenue per user (ARPU) for the second straight quarter after seven-quarters declines.
- The telco, led by Mukesh Ambani, said on Thursday that profit rose to Rs 2,331 crore for the quarter compared to Rs 840 crore a year earlier. The industry had a profit projected to be around 2,000 crore Rs. Profit was 73 percent higher than the previous quarter. It is the company’s tenth profitable quarter in a row.
- The business said it has seen significant investor interest in Jio platforms and will earn a 9.99 percent stake in Rs 43,574 crore from Facebook. Jio platforms have also attracted interest from other global investors for similar-sized additional stake
The biggest issue of rights ever:
- RIL has declared a rights issue of Rs 53,125 crore, the company’s first in three decades, and also India’s largest issue ever. The problem will be in a 1:15 ratio at a price of Rs 1,257 per share. The said founders should completely adhere to the issue of rights, and if any, will also take up unsubscribed sections.
- The company said it would complete a capital raise of more than Rs 104,000 crore by Q1-including the question of ownership, Twitter investment, and BP’s previous investment.
Saudi Aramco deals on track:
- Following the Covid-19 crisis and the lockdowns, Saudi Aramco’s due diligence for the proposed investment in the O2C sector is on track as both sides are committed and actively engaged, the firm said.
Effect of Covid-19:
- At CY2020, global oil demand is forecast to decline by 9.3 million barrels/day YoY, the lowest point in the last eight years. As a result, the productivity of global refining and the economy is likely to be impacted in the near term.
Reliance Retail:
- Reliance Retail operates 11,784 stores occupying 28.7 million square feet with more than 1,500 stores opened in the year and adding a record 30 percent retail space. For the March quarter, the company’s segment revenue grew by 4.2 percent to Rs 38,211 crore, while for the year, EBITDA grew by 32.9 percent to Rs 2,556 crore.
- “Overall, the year was a year of growth with March being a boring month due to the effects of the Covid-19 lockdown,” RIL said in a report.
You can find the whole report here.
