Reliance industries plans to make investment in Jio

Robyn Ryan
April 25, 2017

Reliance shares rose 1.1 percent to 1,417.40 rupees at the close in Mumbai, while the benchmark S&P BSE Sensex Index gained 1 percent.

In comparative terms, the share price of RIL has risen by 31.2 per cent from January 1 to April 24, whereas TCS' scrip price has fallen by 1.1 per cent.

While total income stood at Rs 75,969 crore during the fourth quarter against Rs 56,330 crore in the year-ago period, for the year as whole, RIL posted a standalone net profit of Rs 31,425 crore against Rs 27,384 crore last year.

Reliance's crude refining throughput in Q4 was down by 1.7 percent sequentially to 17.5 million tonnes (MT) from 17.8 MT in previous quarter, which was slightly ahead of estimates of 17.4 MT.

"Jio is witnessing the largest migration from free to paid services in history", said Mukesh Ambani, the chair and managing director of Reliance Industries. RIL's digital venture Reliance Jio Infocomm Limited (Jio) has been touted as the largest startup in the world with investments announced to the tune of Rs 1,50,000 crore. The company's cash reserves went up to Rs 77,226 crore as on March 31, from Rs 76,339 croreon December 31, 2016. Jio acquired 50 million subscribers in just 83 days and 100 million in 170 days. Jio users are today consuming almost as much data as on all the mobile networks in the US and 50% more data than mobile networks in China in a clear indication that India will adopt digitisation and Digital Life faster than anyone else in the world. RIL claims that Jio contributes to more than 80 percent of data consumption in India. It commissioned ethane receipt and handling facilities and commenced ethane cracking at its Dahej manufacturing facility in Gujarat in less than three years, the statement added.

RIL's oil and gas production business however continues to bleed with pre-tax loss widening to Rs 486 crore in Q4 from Rs 153 crore a year back.

Though RIL's quarterly revenue from this vertical was up nearly 50 percent year-on-year at Rs 72,045 crore, earnings before interest and tax (Ebit) fell 1.3 percent year-on-year "on account of lower gasoline and naphtha cracks and planned Fluidized Catalytic Cracking Unit turnaround", which led to marginally lower throughput of processed crude. During fiscal 2017, the company added 371 with 63 stores opened in the fourth quarter.

The firm runs formats like Reliance Fresh, Reliance Super and Reliance Hyper and operates 3,616 stores across 702 cities in India.

On the BSE, 2.09 lakh shares were traded on the counter so far as against the average daily volumes of 2.01 crore shares in the past one quarter.

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