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Last Updated : May 01, 2020 01:21 PM IST | Source: Moneycontrol.com

RIL Q4: Healthy growth in Jio and retail, talks with Aramco on track; 7 key takeaways

The company's board recommended a dividend of Rs 6.50 per equity share of Rs 10 each for the financial year ended March 31, 2020.


Reliance Industries, the country's largest listed company by market capitalisation, on April 30 reported a consolidated profit of Rs 6,348 crore for the January-March quarter 2020, registering a decline of 45.5 percent QoQ and 38.7 percent YoY.

The consolidated profit in the previous quarter was Rs 11,640 crore and in the corresponding quarter last year, it was Rs 10,362 crore.

The bottom line was hit by an exceptional loss of Rs 4,267 crore due to fall in oil prices and demand destruction post COVID-19, but healthy growth in Reliance Jio limited the profit decline.

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Here are key takeaways from RIL's Q4 scorecard:

Jio business

For this segment, standalone revenue from operations, including access revenues, stood at Rs 14,835 crore while standalone EBITDA came at Rs 6,201 crore and EBITDA margin at 41.8 percent.

Standalone net profit came at Rs 2,331 crore. Subscriber base as on March 31, 2020, was 38.75 crore (26.3 percent YoY growth). ARPU during the quarter stood at Rs 130.6 per subscriber per month.

The company saw a gross addition of 24 lakh subscribers in Q4FY20. The quarter saw a strong financial performance from Jio vertical with improvement in EBITDA margins.

Also Read | Received 'strong interest' from global investors for a Facebook-type deal for Jio Platforms: RIL

Jio platform signed a strategic partnership with Facebook in which Facebook will infuse Rs 43,574 crore for a 9.99 percent equity stake.

Jio platform will launch a nationwide video platform called 'Jiomeet'.

Petrochemicals business

Q4FY20 revenue from the petrochemicals segment decreased by 24.1 percent YoY to Rs 32,206 crore ($ 4.3 billion) due to lower price realizations along with disruptions in local and regional markets.

Petrochemicals segment EBIT was at Rs 4,553 crore ($0.6 billion), down 42.8 percent YoY, with a significant decline in margins. The impact of lower product margins was mitigated to some extent by optimizing

feedstock mix during the quarter.

For FY20, revenue from the petrochemicals segment decreased by 15.6 percent to Rs 145,264 crore ($19.2 billion). Petrochemicals segment EBIT was at Rs 25,547 crore ($3.4 billion), down 21.1 percent as compared to the previous year, due to lower margins in key products - Paraxylene, MEG, PET, Polypropylene and Polyethylene.

Digital service business

The company said there has been zero impact on network performance despite disruptions due to a high degree of virtualization and network automation. Traffic surge has been handled with a combination of capacity augmentation and technology.

Standalone revenue from operations, including access revenues, increased to Rs 14,835 crore, with standalone EBITDA of Rs 6,201 crore and EBITDA margin of 41.8 percent.

Also Read | RIL says will achieve zero net debt status ahead of schedule

Standalone net profit was at Rs 2,331 crore during the quarter and at Rs 5,562 crore for the full year, showing an annual increase of 88 percent.

Subscriber base as on March 31, 2020, was at 387.5 million (26.3 percent YoY growth), with ARPU during the quarter of Rs 130.6 per subscriber per month.

Retail business

Reliance Retail- ranked as the fastest-growing retail company in the world  (Global Powers of Retailing 2020, a Deloitte report) - now operates 11,784 stores covering 28.7 million square feet with over 1,500 stores opened in the year and a record 30 percent retail space added. Footfalls at 640 million, were up 17 percent YoY with 125 million registered and loyal customer base, up 40 percent YoY.

For Q4FY20, the revenue of the segment grew by 4.2 percent YoY to Rs 38,211 crore while EBITDA for Q4FY20 grew by 32.9 percent YoY to Rs 2,556 crore.

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Segment's revenues for FY20 grew by 24.8 percent YoY to Rs 162,936 crore. EBITDA for FY20 grew by 56 percent YoY to Rs 9,654 crore. Segment Revenue

The company said the year had been a growth year with March being a tepid month due to the COVID-19 lockdown impact.

Announced India's biggest rights issue

Reliance announced India's biggest rights issue of Rs 53,125 crore, in the ratio of 1 equity share for every 15 equity shares held by shareholders, at a price of Rs 1,257 per share against Thursday's closing of Rs 1,467.05 per share. The proposed rights issue would be the first by RIL in three decades.

Dividend

The company's board recommended a dividend of Rs 6.50 per equity share of Rs 10 each for the financial year ended March 31, 2020.

Talks with Aramco on track

The company said in spite of the COVID-19 crisis and the lockdowns, the due-diligence by Saudi Aramco for the planned investment in the oil-to-chemical business is on track as both the parties are committed and actively engaged.

(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)

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First Published on Apr 30, 2020 08:12 pm
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