Reliance Industries (RIL) shares closed lower after chairman Mukesh Ambani announced that Reliance Jio will be formally launched on September 5.
Reliance Industries (RIL) shares closed lower after chairman Mukesh Ambani announced that Reliance Jio will be formally launched on September 5. He said, “Jio is dedicated to realising PMs vision of digital India. This is dedicated to 120 crore Indians.”
RIL’s scrip settled the day 2.73 per cent down at Rs 1029.15. Shares of Bharti Airtel and Idea Cellular closed 6.37 per cent and 10.48 per cent down at Rs 310.70 and Rs 83.70, respectively.
Ambani further added that Jio will move India from ‘Data Shortage’ to ‘Data Abundance’. He further announced that voice calls as well as roaming within India will be free for Reliance Jio customers.
For the quarter ended June 30, 2016, Reliance Industries reported a consolidated net profit of Rs 7113 crore, up 18.08 per cent, against Rs 6024 crore in the corresponding quarter a year ago. Gross sales of the company slipped by 15.17 per cent year-on-year to Rs 64990 crore for the quarter under review against Rs 76615 crore in the same quarter last year.
Dharmesh Kant, head-retail research, Motilal Oswal Securities said, “No doubt tariff plans for voice and data is going to be a game changer for telecom industry. As for Reliance Industries its large part of capital employed in telecom segment around Rs 1.35 lakh crore will start delivering revenues. Management also guided that around Rs 1.10lakh of capital expenditure done in Petro chemical segment to become productive by FY17 in phased manner. Though, top line from telecom business will start trickling in however; big concern arises on timelines of achieving operating break-even point in context of tariff policy deployed. On petro-chemical and refining front business management maintained its guidance while oil & gas continues to be a drag. To sum up, we expect, per share price of Reliance Industries to remain under pressure in near to medium term.”