Reliance Industries reports revenue of Rs 151,209 crore in Q4 FY 20
In addition to the FB investment, the Board was informed that RIL has received interest from other strategic & financial investors and is poised to announce a similar-sized investment in coming months
Reliance Industries Limited (RIL) reported its financial performance for the year ended 31st March 2020. Highlights of the audited financial results as compared to the previous periods are:
Highlights of the quarter's performance (Consolidated)
- Revenue decreased by 2.5% to Rs 151,209 crore ($20.0 billion)
- EBITDA increased by 7.6% to Rs 25,886 crore ($3.4 billion)
- Profit Before Tax (before exceptional item) decreased by 2.7% to Rs 13,490 crore ($1.8 billion)
- Cash Profit increased by 12.8% to Rs 18,446 crore ($2.4 billion)
- Net Profit excluding exceptional items increased by 3.7% to Rs 10,813 crore ($1.4 billion)
- Net Profit including exceptional items decreased by 37.2% to Rs 6,546 crore ($0.9 billion)
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, “As India and the world grapple with the biggest challenge faced by our generation, I am heartened by the robust response of Reliance to the extraordinary circumstances created by the COVID-19 pandemic."
"I firmly believe that nothing is more valuable in this world than the value of human life — the value of each and every human being, irrespective of their social or economic background. Therefore, the highest act of value-creation lies in saving human life, ensuring human health, and enhancing human wellbeing and happiness. We at Reliance judge and measure our success, both in our business and philanthropic activities, solely on the basis of this moral matrix."
"Reliance is and will continue to be, guided by this philosophy in India’s battle against the COVID-19 pandemic. We have been tirelessly working on multi-pronged prevention, mitigation, and ongoing support strategy that is comprehensive, sustainable, and resilient. RIL has deployed the combined strengths of Reliance Foundation, Reliance Retail, Jio, Reliance Industries, and all the members of the Reliance Family in a well-coordinated manner with the efforts of both Government (at the central, state and local levels) and Civil Society in India."
He continued, "I take this opportunity to also commend the important contribution of all constituents of the Indian industry and business to India’s national endeavour to overcome the corona calamity."
"Today I am pleased to announce that despite the daunting challenges arising from the fallout of the global pandemic, our company has once again delivered a resilient performance for FY 2019-20. 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."
Ambani added, "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 to 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."
"Indeed, converting the corona crisis into a new opportunity, Reliance will innovatively step up its plans to create much greater societal and shareholder value. I am confident that our India and Reliance will emerge stronger in the post-COVID-19 world.” Corona Haarega, India Jeetega!”
In addition, the Board approved Mukesh Ambani’s proposal to forego his entire salary until the impact of Covid-19 abates. In light of the COVID-19 outbreak in India, which has exacted a huge toll on the societal, economic and industrial health of the nation, Mukesh Ambani, the Chairman and Managing Director, has voluntarily decided to forego his entire salary.
The Chairman had his salary capped at 15 crores since 2008-09 in order to set a personal example of moderation in managerial compensation levels. And now, he is forgoing his salary until the company and all its businesses are fully back to their earnings potential. The company is taking all necessary measures to optimize costs and mount an effective operational response to COVID-led exigencies.
The Board was also informed that the company expected to complete the capital raising programme totalling 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.
In addition to the FB investment, the Board was informed that RIL has received strong interest from other strategic and financial investors and is in good shape to announce a similar-sized investment in the coming months. This establishes the attractiveness of Jio Platforms to the world and is a strong validation of RIL’s capability to conceive large-scale disruptive greenfield businesses. With strong visibility to these equity infusions, the Board was informed that RIL is set to achieve net-zero debt status ahead of its own aggressive timeline.
In the financial year 2019-2020, the company achieved consolidated revenue of Rs 659,205 crore ($87.1 billion), an increase of 5.4% as compared to Rs 625,212 crore in the previous year. Increase in revenue is primarily on account of higher revenues from the Consumer businesses.
Digital Services business and Retail business recorded an increase of 40.7% and 24.8%, respectively, in revenue as compared to the previous year. Revenues for the Refining and Petrochemicals business declined in line with a fall in average oil and product prices for the year. Average Brent oil price declined 13% Y-o-Y, while realisations for key petrochemical products declined by 15%-32% Y-o-Y. This was partially offset by higher crude throughput and petrochemicals production during the year.
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