The corona virus has had a major impact on the business of Reliance Industries Limited (RIL). In the fourth quarter of FY 2020, the company’s annualized profit fell by nearly 39 per cent to Rs 6348 crore.
- Profitability fell 39 per cent year-on-year to Rs 6348 crore
- Jio’s profit up on annual basis to Rs 2,331 crore
The corona virus has had a major impact on the business of Reliance Industries Limited (RIL). In the fourth quarter of FY 2020, the company’s annualized profit fell by nearly 39 per cent to Rs 6348 crore. While in the third quarter RIL’s profit was a record Rs 11640 crore. At the same time last year, the company’s profit was Rs 10,362 crore in the same period.
Actually, Reliance Industries incurred a lump sum loss of Rs 4267 crore in the fourth quarter. Although the revenue of Reliance Industries has seen a slight decline on an annual basis, it was down by 2.3 per cent to Rs 1.39 lakh crore.
Great profits to live
Telecom Venture Jio has done well in the fourth quarter. Jio’s profit was 177.5 per cent year-on-year and 72.7 per cent sequentially at Rs 2,331 crore. While the income of Jio stood at Rs 14835 crore during this period. The subscriber base has increased by 26.30 per cent to 38.75 crores.
The company’s refining business declined to Rs 84854 crore in the fourth quarter from Rs 1.03 lakh crore in the previous quarter. Reliance Industries, India’s largest listed company in terms of market capitalization, has also approved the proposal of a dividend of 6 rupees 50 paise per share in the board meeting.
Seal on bringing rights issue
At the same time, the company’s board has also approved the rights issue on 30 April. This rights issue will be brought at a price of Rs 1257 per share. The size of the rights issue will be Rs 53125 crore. Under this rights issue, a right share will be issued on 15 shares. After 29 years, the company will raise funds publicly.
The company plans to raise Rs 1.04 lakh crore in the first quarter of FY 2021. The company’s board said that negotiations on the Saudi Aramco deal were going in the right direction. Significantly, Facebook has a big deal with Jio Venture of the company recently.
