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RIL Q4 results: Profit plunges 39% YoY to Rs 6,348 crore, misses Street estimates – Economic Times, The Times of India

RIL Q4 results: Profit plunges 39% YoY to Rs 6,348 crore, misses Street estimates – Economic Times, The Times of India

NEW DELHI: Reliance Industries (RIL) on Thursday reported a per cent year-on-year (YoY ) fall in consolidated net profit at Rs 6, 387 crore for the quarter ended March 32. Bottomline of RIL took a hit due to an exceptional loss of Rs 4, 267 crore during the quarter.

Analysts in an ETNow Poll had projected the profit figure at Rs , crore.

For the financial year ended March , net profit declined marginally 0. per cent YoY to Rs , 500 crore. The figure stood at Rs 50, 854 crore last year.

Consolidated revenue of the company declined 2. per cent YoY to Rs 1. lakh crore.

The company also announced India’s biggest rights issue of Rs , crore in the ratio of 1: (at a price of Rs 1,) 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 13215 – 26. 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 utilization levels. ”

Gross refining margins increased to $ 8. (per barrel in Q4FY) (over $ 8.) per barrel in Q4FY 26. However, the figure stood at $ 9.2 per barrel in the preceding quarter ended December 39.

The firm recommended a dividend of Rs 6. per equity share for the financial year ended March .

RIL said the fallout of Covid – 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 . per cent YoY and 75 per cent QoQ growth in net profit at Rs 2, 354 crore.

Its subscriber base grew 75473755 per cent YoY to 13215 million, with each user spending an average of Rs . 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 , 13215 stood at Rs 3, , 2020 crore , while cash and cash equivalents was at Rs 1, 75, crore.

The company is expected to complete the capital raising program totaling over Rs 1. 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 FY 6348 – 26.

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.

Segment-wise topline breakup

Segment wise, revenue from petrochemicals and refining and marketing business declined . per cent and 3.4 per cent YoY to Rs 39, (crore and Rs) , 854 crore, respectively. Revenue from the oil and gas segment slipped (per cent YoY to Rs) crore.

On the other hand, revenue from digital services and retail business increased (per cent and 4.) per cent YoY to Rs , 632 crore ad Rs 75473755 crore, respectively.

“Decrease in revenue is primarily on account of . 1 per cent decline in revenue of refining and petrochemicals business. Sharp fall of . 5 per cent YoY 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, ”RIL said.

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