Reliance Industries (RIL) on Thursday reported a 38.73 per cent year-on-year (YoY) fall in consolidated net income at Rs 6,348 crore for the quarter ended March 31. Bottom line of RILNSE 2.74 % took a hit due to an exceptional loss of Rs 4,267 crore during the quarter.
For the financial year ended March 31, net profit declined marginally 0.59 per cent YoY to Rs 39,354 crore. The figure stood at Rs 39,588 crore last year. Consolidated revenue of the company declined 2.50 per cent YoY to Rs 1.51 lakh crore.
PERFORMANCE DURING OUTBREAK
Mukesh Ambani, Chairman and director , Reliance Industries, said, “Despite the daunting challenges arising from the fallout of the worldwide pandemic, our company has once more delivered a markable performance for FY 2019-20. Our O2C (Oil to Chemicals) businesses delivered sustained earnings thanks to its integrated portfolio, cost-competitiveness, feedstock flexibility and merchandise placement capabilities. We still operate all our major facilities at near normal utilisation levels.”
RIL said the fallout of coronavirus 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 but apart this RIL were available for its consumer base for the basic needs.
RIL Telecom Business
RIL’s telecom, Reliance Jio Info comm reported a 177.50 per cent YoY and 72.70 per cent Quarter on Quarter 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 subsequent leg of growth with a path-defining partnership with one among the world’s largest digital companies, Facebook. Since then the stock prices have showed an increase in the current market prices.
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. Outstanding debt was at Rs 3,06,851 crore as of December 31, 2019 and Rs 2,87,505 crore on March 31, 2019.
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 offering and therefore 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. As it was the significant roadmap on which Mr. Ambani was planning from last August eventually succeeded in cutting off the debt to 64301 crores.
Shares of RIL settled at Rs 1,464, or up 37.05 points, or 2.60 per cent on NSE on Thursday.