Reliance Industries (RIL) announced its Q4 results and rights issue of shares after market hours on Thursday, 30 April 2020.
Shares of RIL closed 2.86% higher at Rs 1467.05 on Thursday.
On a consolidated basis, Reliance Industries (RIL)'s net profit fell 38.74% to Rs 6,348 crore on 2.5% decline in revenue to Rs 151,209 crore in Q4 March 2020 over Q4 March 2019.
EBITDA increased 7.6% to Rs 25,886 crore in Q4 March 2020 over Q4 March 2019. Decrease in Q4 revenue is primarily on account of 10.1% decline in refining and petrochemicals business revenues. Sharp fall of 20.5% Y-o-Y in average Brent oil price led to lower product price realization across the hydrocarbon chain. This was partially offset by continuing growth in consumer businesses, even amidst the operational issues posed by the pandemic. Digital services and retail business recorded an increase of 30% and 4.2% Y-o-Y respectively, in revenue during the quarter.
RIL's net profit fell 0.59% to Rs 39,354 crore on 5.44% rise in revenue to Rs 659,205 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). EBITDA increased 10.4% to Rs 102,280 crore in FY20 over FY19.
RIL's telecom arm Reliance Jio Infocomm reported a 177.50% YoY and 72.70% QoQ growth in net profit at Rs 2,331 crore in Q4 quarter. Its subscriber base grew 26.30% 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.
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Organized retail business segment revenue rose 4.2% to Rs 38,211 crore in Q4 March 2020 over Q4 March 2019. EBITDA for Q4 March 2020 grew by 32.9% Y-o-Y to Rs 2,556 crore.
Reliance Retail now operates 11,784 stores covering 28.7 million square feet with over 1,500 stores opened in the year and a record 30% retail space added. Footfalls at 640 million, were up 17% Y-o-Y with 125 million registered / loyal customer base, up 40% Y-o-Y.
Refining & marketing business segment revenue fell 3.4% to Rs 84,854 crore in Q4 March 2020 over Q4 March 2019. Segment EBIT increased by 28.2% Y-o-Y to Rs 5,706 crore with higher throughput and better GRMs. GRM for Q4 March 2020 was at $8.9/bbl, outperforming Singapore complex margins by $7.7/bbl.
The board recommended a dividend of Rs 6.50 per equity share for the financial year ended 31 March 2020.
Outstanding debt as on 31 March 2020 was Rs 336,294 crore ($44.4 billion). Cash and cash equivalents as on 31 March 2020 were at Rs 175,259 crore ($23.2 billion).
Meanwhile, RIL's board approved issuance of equity shares of Rs 10 each of the company of an issue size of Rs 53,125 crore by way of 'rights issue' to eligible equity shareholders of the company as on the record date. The price for the rights issue has been determined at Rs 1,257 per share and the share ratio at 1:15. The promoters have confirmed that in addition to subscribing to their aggregate entitlement in full, they will also subscribe to all the unsubscribed portion.
The promoter and promoter group of the company have confirmed they will subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to all the unsubscribed shares in the issue.
The board was also informed that the company 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.
Meanwhile, RIL said it will hive off its oil-to-chemicals (O2C) business into a separate division. The RIL's board has approved the proposal, while it needs to get approved by the National Company Law Tribunal. O2C undertaking of the company comprises entire oil-to-chemicals business of the company consisting of refining, petrochemicals, fuel retail & aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities, as more particularly set out in the scheme.
RIL has been exploring various opportunities to bring in strategic/other investors in the O2C Business. To facilitate such investments, it is proposed to transfer the O2C Undertaking into a separate wholly-owned subsidiary of the company. Accordingly, this scheme is being proposed for transfer of O2C business of the company to Reliance O2C Limited. No shares are proposed to be issued pursuant to the scheme. Therefore, there will be no change in the shareholding patterns of the company and Reliance O2C Limited. Further, Reliance O2C Limited is not seeking listing of its shares and will continue to be an unlisted company.
RIL is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, telecom and digital services.
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