Mukesh Ambani-led Reliance Industries Limited (RIL) on Thursday recorded a 0.1 per cent rise in consolidated profit (after exceptional item) at Rs 39,880 crore in the year ended March 2020. The oil-to-telecom conglomerate had posted a profit of Rs 39,837 crore in complete FY19. RIL recorded a rise in revenue of 5.4 per cent at Rs 659,205 crore in FY20, the company said in a regulatory filing. RIL posted a 39 per cent fall in consolidated profit to Rs 6,348 crore during January-March quarter 2020 as against Rs 10,362 crore in the corresponding period of last year. The revenue from operations were recorded at Rs 139,283 crore, down 2.30 per cent from Rs 142,565 crore in the year-ago period.
In December quarter, India's most-valued company had reported a 13.5 per cent rise in net profit at Rs 11,640 crore as opposed to Rs 10,251 crore in the corresponding quarter last year. "COVID-19 is significantly impacting business operation of the companies, by way of interruption in production, supply chain disruption, unavailability of personnel, closure / lock down of production facilities etc. Further, during March 2020/April 2020, there has been significant volatility in oil prices, resulting in reduction in oil prices," RIL said on coronavirus crisis.
The revenue from the refining and marketing segment fell by 3.4 per cent y-o-y to Rs 84,854 crore. The gross refining margins (GRM), a metric of how much the firm gained by refining a barrel of crude oil, was recorded at $8.9 per barrel as against $9.2 per barrel in the March quarter.
"Petrochemicals segment EBIT was at Rs 4,553 crore ($ 0.6 billion), down 42.8 per cent YoY, with significant decline in margins. The impact of lower product margins was mitigated to some extent by optimizing feedstock mix during the quarter," RIL added. The revenue for the oil & gas segment fell by 41.5 per cent y-o-y to Rs 625 crore.
RIL also announced India's biggest rights issue of Rs 53,125 crore. "Rights issue will enable participation of all shareholders in growth businesses of Reliance, while promoters will subscribe their full entitlement of the rights issue and also to all the unsubscribed portion," company said. RIL also recommended a dividend of Rs 6.50 per equity share for FY20.
"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 utilisation levels," Mukesh Ambani, Chairman and Managing Director, Reliance Industries said.
Reliance also said that the Board had approved Mukesh Ambani's proposal to forego his entire salary until the impact of Covid-19 was over. "In light of the COVID-19 outbreak in India, which has exacted a huge toll on the societal, economic and industrial health of the nation, Mukesh Ambani, the Chairman and Managing Director, has voluntarily decided to forego his entire salary," the company said.
RIL 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 deferred cash bonus and annual perform performance-linked incentives. According to RIL, it will keep analysing "economic and business environment" and will reconsider its response based on the future situation.
Shares of RIL settled at Rs 1,464, or up 37.05 points, or 2.60 per cent on NSE on Thursday.