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Analysts in an ETNow survey had projected the profit figure at Rs 10.5 crore.
For the financial year ended March 31, net income decreased marginally 0.59 percent, year-over-year, to Rs 39,354 crore. The figure stood at Rs 39,588 crore last year.
The company’s consolidated revenue decreased 2.50 percent year-on-year to Rs 1.51 lakh crore.
The company also announced India’s largest rights issue of Rs 53,125 crore in the ratio of 1:15 at a price of Rs 1,257 per share. “The issue of rights will allow all shareholders to participate in RIL’s growing business. The promoters will subscribe their full right to the issue of rights and also to the entire unsubscribed part, “said the oil commander to telecommunications.
Commenting on the results, Mukesh Ambani, President and CEO of Reliance Industries, said: “Despite the enormous challenges arising from the consequences of the global pandemic, our company has once again delivered resilient performance for fiscal year 2019. -twenty. Our O2C (Oil to Chemicals) businesses made sustained profits due to their integrated portfolio, cost competitiveness, raw material flexibility, and product placement capabilities. We continue to operate all of our main facilities at near normal utilization levels. ”
Gross refining margins increased to $ 8.90 per barrel in Q4FY20 above $ 8.20 per barrel in Q4FY19. However, the figure stood at $ 9.2 per barrel in the previous quarter that ended on December 31.
The firm recommended a dividend of Rs 6.50 per share of capital for the financial year ending March 31.
RIL said the consequences of the Covid-19 outbreak on economic activity disrupted companies in the manufacturing and services sectors during the quarter. World oil markets witnessed significant volatility due to the destruction of demand and excess supplies. Blocks and travel restrictions in most geographies led to a sharp drop in demand for transportation fuel.
Telecom business
RIL’s telecoms arm, Reliance Jio Infocomm, reported annual growth of 177.50 percent and 72.70 percent quarter-on-quarter in net profit at Rs 2.331 crore.
Its subscriber base grew 26.30 percent, year-over-year, to 387.50 million, and each user spent an average of Rs 130.60 per month during the quarter, the company said in a statement.
“Jio is embarking on the next stage 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 31, 2020 was Rs 3.36.294 billion, while cash and cash equivalents were Rs 1.75.259 billion.
The company is expected to complete the capital raising program totaling more than Rs 1.04 lakh crore for the first quarter of the current financial year. This includes Facebook’s investment in Jio Platforms, the upcoming rights issue, and British Petroleum’s previous investment in fiscal year 2019-2019.
In addition to investing in Facebook, the company has received great interest from other strategic and financial investors and is likely to announce an investment of similar size in the coming months.
“With strong visibility into capital infusions, the board was informed that RIL is poised to reach zero net debt status before its own aggressive timeline,” he said.
Top line separation by segment
As for the segment, revenues from the petrochemicals, refining and marketing businesses decreased 24.10 percent and 3.4 percent, year-over-year, to Rs 32,206 crore and Rs 84,854 crore, respectively. Oil and gas segment revenue fell 41.50 percent, year-over-year, to Rs 625 crore.
On the other hand, revenues from digital services and retail businesses increased 30 percent and 4.20 percent, year-on-year, to Rs 18,632 crore and Rs 38,211 crore, respectively.
“The decrease in revenues is primarily due to a 10.1 percent decrease in revenues from the refining and petrochemical business. The sharp drop of 20.5% year-on-year in the average price of brent oil led to a lower realization of the price of the product throughout the hydrocarbon chain. This was partially offset by the continued growth of consumer companies, even amid the operational problems posed by the pandemic, ”said RIL.
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