Ahead of its Q4 results, India's biggest conglomerate Reliance Industries has announced up to 10 per cent salary cuts for some of its employees working in the hydrocarbon division in the wake of coronavirus pandemic. The company has also deferred cash bonus and annual perform performance-linked incentives. As per Reliance Industries, it will keep analysing "economic and business environment" and will reconsider its response on based on the future situation.
The company's board of directors will also forgo 30-50 per cent of their salary. Company MD and Chairman Mukesh Ambani will forgo his entire compensation for the year, a letter signed by Reliance Industries Executive Director Hital R Meswani says, Business Standard reported. The pay cuts will apply only to employees earning over Rs 15 lakh a year, and those earning below Rs 15 lakh will not be impacted.
"The hydrocarbons business has been adversely impacted due to reduction in demand for refined products and petrochemicals. This has of course put pressure on our hydrocarbons business necessitating optimisation and cost reduction across all fronts," the letter said.
Besides, RIL is scheduled to announce the standalone and consolidated financial results today for the quarter and year ended March 31, 2020. RIL's consolidated net sales may stand at Rs 1.39 lakh crore and net profit is estimated at Rs 10,429 crore, according to a Bloomberg survey.
The RIL board is also expected to announce a decision on a proposal to issue equity shares to existing shareholders on a rights basis during a board meeting on April 30. It will also recommend dividend on the equity shares.
Meanwhile, the shares of RIL were trading at Rs 1,486, or up 59.05 points, or 4.14 per cent on NSE at the time of reporting.