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. The result was announced after market hours today, 30 April 2020.
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.
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.
Commenting on the results, Mukesh D. Ambani, chairman and managing director, Reliance Industries said: "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. Our consumer businesses further strengthened their leadership positions and recorded robust growth on all operating and financial parameters during the year. Both Retail and Jio, continue to work towards providing superior products and services to Indian consumers. We are fully committed on our investment plans in our consumer businesses and new initiatives. We are at the doorsteps of a huge opportunity and our rights issue and all other equity transactions will strengthen Reliance and position us to create substantial value for all our stakeholders.
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 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.
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