Reliance financial dropdown and profit

Reliance financial dropdown and profit

Reliance Industries has announced that chairman Mukesh Ambani has agreed to forgo his entire compensation starting April 1 while senior executives will take 30-50% pay cuts. Reliance added that employees in hydrocarbons division earning over 15 lakh per annum will face a 10% cut in fixed pay. Annual bonuses usually paid in the first quarter also stand deferred Reliance said.

Financial growth

Reliance Industries posted a 38.7% year-on-year fall in consolidated profit to 6,484crore for the quarter ended march 31 compared to 10,362crore posted in the same period last year. Reliance consolidated revenue declined. 2.50% year-to-year to 1.51lakh crore subsequently. Reliance jio posted a net profit of 2,331 crore profit in the march quarter. Reliance jio profit goes up  nearly 6.5%.

HIGHLIGHTS OF QUARTER’S PERFORMANCE (CONSOLIDATED - RIL)

• Revenue decreased by 2.5% to ` 151,209 crore ($ 20.0 billion)

• EBITDA increased by 7.6% to ` 25,886 crore ($ 3.4 billion)

• Profit Before Tax (before exceptional item) decreased by 2.7% to ` 13,490 crore ($ 1.8 billion)

• Cash Profit increased by 12.8% to ` 18,446 crore ($ 2.4 billion)

• Net Profit excluding exceptional items increased by 3.7% to ` 10,813 crore ($ 1.4 billion)

• Net Profit including exceptional items decreased by 37.2% to ` 6,546 crore ($ 0.9 billion)

Network18 Media & Investments Limited reported 4QFY20 consolidated revenue of ` 1,464 crore an increase of 18.9% Y-o-Y. Rise in ranking of our flagship Entertainment channel and upsurge in News consumption helped the group post growth in ad-revenues in the quarter, even as advertising was severely impacted during late-Q4 due to the COVID-19 related lockdown.

Entertainment profitability continued its improved run despite ad-headwinds, led by growth in subscription and syndication revenue streams, and opex reductions. Increased contribution of subscription in revenue mix to 35% in FY20 (vs 26% in FY19), and furthering of cost controls implemented in FY20 shall help blunt the impact of the COVID crisis.

 

 

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 a 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.

I take this opportunity to also commend the important contribution of all constituents of 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 utilization levels.

Deal with Facebook

After selling a 9.99% stake in its digital arm jio platforms to facebook, Reliance Industries said it has received additional interest from global investors for a similar sized stake. The Mukesh Ambani led conglomerate said that an announcement could be made in a few months. This investment is take a large form to giving support to whatsapp business of jio called ‘Jio Mart’.

                                                                  

The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.

The goal with this investment is to enable new opportunities for businesses of all sizes, but especially for small businesses across India and create new and exciting digital ecosystems that will empower, enrich and uplift the lives of all 1.3 billion Indians.

Reliance oil sector news

Reliance Industries has announced plans to carve out its oil and petrochemical business into a separate entity to enable the sale of 20% stake in the unit of Saudi Aramco. In august 2019, the company valued its oil- to chemicals division of 875 billion including debt. Reliance said due diligence by Saudi Aramco for the investment was on track despite the Corona vireos crisis.

In the time oil demand was going down because there are coming electrical products, So reliance has converted his oil to chemical for future. 

With seeing the all dropdown of oil Morgan Stanelly said that “In 2021 oil was gone in the last stage”.

Headlines

•     There is all about Reliance has converting his oil in chemical products, so there is Mukesh Ambani is thinking about the future of oil and electrical products. Ambani is insuring his business for the long term, because chemical is the product whose demand has not gone down.

•  Ambani has not cut the salary of employees who get the salary down to 15lakh annual, above 15lakh there is a 10 %.

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