Reliance Industries Q2 results HIGHLIGHTS: Mukesh Ambani firm posts profit of Rs 11,262 cr, Jio profit up

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Updated:Oct 18, 2019 7:00:00 pm

Mukesh Ambani-led Reliance Industries Limited (RIL) on Friday posted profit of Rs 11,262 crore results for the second quarter of the financial year 2019-20.

Reliance jio, mukesh ambani, IUC, Bharti Airtel, Vodafone Idea, TRAI, Telecom regulator, indian telecom market, jio 4g servicesTelecom arm Jio also reported strong numbers, posting a profit of Rs 990 crore.

Mukesh Ambani-led Reliance Industries Limited (RIL) on Friday posted a profit of Rs 11,262 crore results for the second quarter of the financial year 2019-20. Telecom arm Jio also reported strong numbers, posting a profit of Rs 990 crore. Reliance Industries reported Q2 results below street estimates last year. RIL had reported a net profit of Rs 9,516 crore, up 17 percent on-year.  RIL today added another feather to its cap by becoming the first Indian firm to hit the Rs 9 lakh crore market valuation mark in intra-day trade. The company’s market valuation zoomed to Rs 9,05,214 crore on the BSE during the day. However, at the close of trade, the company’s market capitalization (m-cap) settled at Rs 8,97,179.47 crore.

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Highlights

    19:00 (IST)18 Oct 2019
    RIL shares record fresh high

    Shares of Mukesh Ambani-led Reliance Industries touched a fresh record today, propelling the firm’s market capitalisation to hit the crucial Rs 9 lakh crore mark. The rally in shares came ahead of the Q2 results. Reliance Industries shares jumped by more than 2 per cent to hit the day’s high at Rs 1,428. Reliance Industries market capitalisation has swollen to Rs 9.03 lakh crore, making it India’s most valuable firm by market capitalisation. IT giant TCS comes at a distant second with its market capitalisation at Rs 7.67 lakh crore.

    18:59 (IST)18 Oct 2019
    Mukesh Amabni on RIL Q2 results

    Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, “The Company has reported record net profit for the quarter. These excellent results reflect the benefits of our integrated Oil to Chemicals (O2C) value chain and the rapid scale-up of our Consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility, and higher petrochemicals volumes. Our O2C business, with new partnerships, is best placed to pursue growth and substantial value creation.”

    18:55 (IST)18 Oct 2019
    Retail business EBITDA rose 13%

    Consumer businesses, which till last year accounted for a quarter of the company's pre-tax profit, contributed a third of EDITDA in Q2. Retail business EBITDA rose 13 per cent to Rs 2,322 crore while telecom arm Jio posted a net profit of Rs 990 crore.

    18:54 (IST)18 Oct 2019
    Jio profit up

    Jio Q2 net profit up 45.4 pc to Rs 990 cr, operating revenue up 33.7 pc to Rs 12,354 crore

    18:51 (IST)18 Oct 2019
    RIL Q2: Key figures in nutshell

    Revenue increased by 4.8 % to Rs 163,854 crore ($ 23.1billion)

    PBDIT increased by 15.5% to Rs 25,820 crore ($ 3.6 billion)

    Profit Before Tax increased by 14.1% to Rs15,055 crore ($ 2.1billion)

    Cash Profit increased by 18.0% to Rs 18,305 crore ($ 2.6 billion)

    Net Profit increased by 18.3% to Rs11,262 crore ($ 1.6 billion)

    18:28 (IST)18 Oct 2019
    There is policy space to address growth concern

    "As the inflation scenario remains benign with headline inflation projected at below target in the remaining period of 2019-20 and Q1:2020-21, there is policy space to address growth concerns. Hence, I vote for reducing the policy repo rate by 25 basis points,"  Das said.

    18:22 (IST)18 Oct 2019
    All members vote for cut

    All the six members of the MPC had voted in favour of a rate cut.

    18:18 (IST)18 Oct 2019
    Growth-inflation dynamics call for another 25 basis points cut

    RBI Executive Director Michael Debabrata Patra said that over the recent weeks, monetary and fiscal actions have been undertaken and it is important to buttress this coordinated endeavour. He voted for a 25 bps rate cut. Pami Dua said the growth-inflation dynamics call for another 25 basis points cut, bringing the cumulative easing this year to 135 basis points. However, Chetan Ghate, who too voted for a quarter percentage point cut, opined that monetary policy cannot be a permanent form of stimulus.

    18:13 (IST)18 Oct 2019
    Private investment has also lost traction

    Private investment has also lost traction, with the corporate sector reluctant to make fresh investments even though capacity utilisation in the manufacturing sector has operated close to the long-term average in the recent period, he opined during the three-day MPC meeting that concluded on October 4.

    18:13 (IST)18 Oct 2019
    Slowing growth prompted RBI Guv to favour another rate cut: MPC minutes

    Slowing economy and subdued private investments prompted RBI Governor Shaktikanta Das to opt for 25 basis points reduction in policy rate earlier this month, as per the minutes of the MPC meeting released on Friday. Das-headed Monetary Policy Committee (MPC) reduced the key policy rate for the fifth time in a row since January, taking the total to 135 basis points.

    17:53 (IST)18 Oct 2019
    Weak sentiments may become self-fulfilling

    MPC Member Chetan Ghate says worried weak sentiments may become self-fulfilling and self-fulfilling weak sentiments will complicate MPC's job.

    17:51 (IST)18 Oct 2019
    Any substantial growth recovery likely only by October-December

    MPC member Ravindra Dholakia says that any substantial growth recovery likely only by October-December.

    17:51 (IST)18 Oct 2019
    MPC should be prudent

    MPC member Michael Patra says given weak growth, MPC should be prudent, not data dependent and monetary policy should pre-emptively address output gap.

    17:50 (IST)18 Oct 2019
    RBI Governor Shaktikanta Das says weak private consumption a matter of concern

    RBI Governor Shaktikanta Das says weak private consumption a matter of concern and corporate sector reluctant to make fresh investments.

    15:55 (IST)18 Oct 2019
    BSE live: Sensex ends 246 points up, Nifty near 11,700

    The Sensex closed about 246 points higher at 39,298, while the Nifty ended the session near the 11,700-mark. Yes Bank, Maruti Suzuki, Power Grid, NTPC were among the top gainers, jumping up to 8.5%. Tata Motors, Bajaj Auto were among the biggest losers, shedding up to 1%. A look at LIVE Sensex heatmap.

    15:33 (IST)18 Oct 2019
    FATF retains Pakistan in Grey List; warns of action

    International terror financing watchdog FATF on Friday retained Pakistan on the Grey List and warned the country of action for its failure in combating money laundering and terror financing, officials said. The decision was taken after a five-day plenary of the Financial Action Task Force (FATF) held here. The FATF noted that Pakistan addressed only five out of the 27 tasks given to it in controlling funding to terror groups like the Lashkar-e-Taiba and Jaish-e-Mohammad, responsible for series of attacks in India.

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    15:31 (IST)18 Oct 2019
    US imposes tariffs on EU goods, targeting Airbus, wine and whisky

    The United States imposed tariffs on a record $7.5-billion worth of European Union goods on Friday, despite threats of retaliation, with Airbus, French wine and Scottish whiskies among the high-profile targets. The tariffs, which took effect just after midnight in Washington (0401 GMT), came after talks between European officials and US trade representatives failed to win a last-minute reprieve. The WTO-endorsed onslaught from US President Donald Trump also comes as Washington is mired in a trade war with China and could risk destabilising the global economy further. In the line of fire are civilian aircraft from Britain, France, Germany and Spain — the countries that formed Airbus — which will now cost 10 percent more when imported to the US. But the tariffs also target consumer products such as French wine, which Trump had vowed to attack in recent months.

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    15:28 (IST)18 Oct 2019
    5 platforms that you may use to save more during your festive shopping this Diwali

    Even as traders provide deals, discounts, cashbacks and reward points, both offline and online, to attract maximum sales, people look for more options to save some extra money as they go overboard to buy things for self, family, relatives as well for giving gifts to neighbours, clients, employees, business providers etc as gifting in this festival occasion is an age-old tradition followed by Indians. The purchasing spree makes it a golden period for retailers in the country, with industry estimates suggesting that festive sales account for around 20-30 per cent of annual revenue for apparel and lifestyle brands.

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    15:26 (IST)18 Oct 2019
    Piyush Goyal cautions e-commerce firms against alleged violation of FDI norms, warns of stern action

    Amid ongoing tussle between the traders’ body Confederation of All India Traders (CAIT) and e-commerce companies including Amazon and Flipkart, Commerce minister Piyush Goyal cautioned e-retailers against flouting laws saying that violation of FDI policy will earn stern action against the one who will flout the policy, according to CAIT’s Secretary General Praveen Khandelwal who met Goyal on Wednesday. “Government is seriously examining the matter in the light of parameters of the policy and very soon the government will come out in action mode,” Khandelwal quoted the Commerce minister in a note released on Thursday.

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    14:40 (IST)18 Oct 2019
    Mukesh Ambani’s Reliance Jio only telecom to add users in August; Voda-Idea, Airtel lose

    RIL’s telecom arm Reliance Jio is the only operator whose user base expanded in August 2019 while rivals including Vodafone-Idea and Sunil Bharti Mittal’s Airtel continued to lose subscribers. According to the latest data from telecom watchdog TRA, Vodafone-Idea lost over 49 lakh subscribers and Bharti Airtel’s base shrunk by over 5 lakh users. On the other hand, Mukesh Ambani’s three-year-old firm Jio added over 84 lakh new users. However, the telecom operator is yet behind Vodafone-Idea in the wireless segment and according to the same TRAI data, Jio has about 29.74% of the market share while Vodafone-Idea has 32.03% share with over 37 crore subscribers in the wireless segment. 

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    13:49 (IST)18 Oct 2019
    FRDI Bill: New version must ensure adequate protection of bank deposits

    The Modi government is in the process of reworking the Financial Resolution and Deposit Insurance (FRDI) Bill, suggest news reports. The legislation was introduced in 2017 by the then finance minister Arun Jaitley and was withdrawn a year later after concerns were raised about the bail-in clause, under which depositors of a failing financial institution would bear part of the resolution cost. The Bill was introduced because the Insolvency and Bankruptcy Code, 2016 did not cover deposit-taking financial institutions.

    13:10 (IST)18 Oct 2019
    Reliance Industries hits Rs 9 lakh crore mcap

    Shares of billionaire Mukesh Ambani-led Reliance Industries touched a fresh record high on Friday, propelling the firm’s market capitalisation to hit the crucial Rs 9 lakh crore mark. The rally in shares came ahead of the Q2 results scheduled to be reported today. Reliance Industries shares jumped by more than 2% to hit the day’s high at Rs 1,428. Reliance Industries market capitalisation has swollen to Rs 9.03 lakh crore, making it India’s most valuable firm by market capitalisation. IT giant TCS comes at a distant second with its market capitalisation at Rs 7.67 lakh crore. Reliance Industries Ltd (RIL) is expected to report strong earnings in the September quarter on the back of a recovery in refining margins which is likely to offset weakness in petrochemicals, retail, and telecom operations.

     
    13:02 (IST)18 Oct 2019
    Rs 2,000 note introduced to curb black money, hoarding stopped from printing for same reasons

    The Rs 2,000 note, which was brought into the system after demonetisation to curb black money and hoarding, has now been completely stopped from printing due to promoting the same problems. Not even a single note is printed so far in this financial year. The officials have stated that a high circulation of Rs 2,000 notes may defeat the government’s objectives as they are easier to use for illegal purposes such as smuggling, according to a reply to an RTI filed by The New Indian Express. The officials cited the unaccounted cash of Rs 6 crore in Rs 2,000 notes seized at Andhra-Tamil Nadu border as an incident that inspired them to take this action. 

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    12:53 (IST)18 Oct 2019
    What pulls down China’s GDP growth to slowest level since 1992

    China’s biggest trouble might seem to be a trade war with the US, but the gigantic hidden debt pile could hurt the Chinese economy more than anything else. China’s government is sitting on a ballooning hidden debt pile of up to $6 trillion, according to S&P Global research. These borrowings are reportedly made by the local governments for infrastructure development. The debt of this magnitude imparts severe credit risk when unveiled. The S&P report came a few months back when the trade war was gaining momentum. Given the sheer size of the off-balance-sheet debt, China probably needs a decade or more to address it, S&P mentioned. 

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    12:40 (IST)18 Oct 2019
    Online SBI, HDFC, ICICI, or other bank’s customer? Attacked by fraudsters? Do this immediately

    While preventive measures are necessary, it is also important for bank customers to be aware of what to do when they fall prey to fraudsters.

    Krishnapur said that finding out that your identity has been stolen can be taxing. He suggests victims of identity theft following steps to take immediately after learning about the crime:

    • Once you are sure that your identity is stolen, contact the police and file a complaint – reporting theft is the first step in the process.
    • Call your bank and credit card companies, asking them to block the account or card in question.
    • Notify them of any fraudulent activity. While reimbursement might be a longer process, they can close/freeze the unauthorized account immediately. Also, ask them to set up a fraud alert and to check if anyone has tried to get credit using your name.
    12:35 (IST)18 Oct 2019
    Online Diwali shopping: Snapdeal records 50% growth as small city buyers fuel sales

    Homegrown e-commerce platform Snapdeal has recorded a 50% jump in sales as buyers from non-metro sales fuelled volume numbers. Concluding the first two legs of its Diwali festive sales, Snapdeal said it is “confident of the momentum continuing in the third and final Snap-Diwali sale”. The e-tailer also said that a whopping 90% of its orders were placed by shoppers in non-metro and tier 2, tier 3 cities like Nagpur, Surat, Vijayawada, Chandigarh, Panaji, Shimla,  Guwahati, Roorkee, etc. The company has already kick-started the next round and will conclude it on 20 October.  

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    12:04 (IST)18 Oct 2019
    PMC Bank crisis: Setback for depositors; SC refuses to entertain plea on lifting withdrawal limit

    n a setback for depositors, Supreme Court on Friday refused to entertain the plea of Punjab & Maharashtra Co-operative (PMC) Bank account holders seeking lifting of restriction on cash withdrawals, news agency PTI reported. The apex court said that the account holders should seek relief from the relevant High Courts, the report added. The RBI has placed limits on withdrawal of savings after it found out financial irregularities in PMC Bank’s functioning, hiding, and classification of loans given to HDIL. The restrictions from the RBI came in after it found the bank’s exposure to real estate developer HDIL was in too much in excess of what the regulations require and also as the lender hid the NPAs of HDIL. 

    11:46 (IST)18 Oct 2019
    Mukesh Ambani’s new e-commerce plan involves 3 crore small traders in $700 billion opportunity

    Mukesh Ambani’s new commerce plan is a $700 billion opportunity for the company as the Reliance Industries’ retail arm plans to “empower” 3 crore small traders and merchants, RIL Chairman Mukesh Ambani said at the 42nd Annual General Meeting. “New Commerce is a massive new business opportunity of $700 billion… the main purpose of New Commerce is to completely transform the unorganized retail market,” Mukesh Ambani said. The unorganised retail industry accounts for over 80% of total Indian retail. Reliance Retail, one of the biggest retail chains in India along with Kishore Biyani’s Future Group, is deploying new-age technologies such as blockchain, Internet Of Things, AI on a pan-India basis to link producers, traders, small merchants, consumer brands and consumers.

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    11:42 (IST)18 Oct 2019
    Mukesh Ambani’s Reliance Jio India’s 2nd most influential brand; this US company is no 1

    Mukesh Ambani’s telecom company Reliance Jio is the second most influential brand in India but is beaten by the globally used search engine Google, a recent survey says. In the previous year’s survey, Mukesh Ambani’s Reliance Jio stood at 3rd position and was left behind by both Larry Page and Sergey Brin founded Google and Jeff Bezos’ Amazon. Also, Bharti Airtel, one of the chief competitors of Reliance Jio in India, stood at eighth position. All of the top ten spot grabbers on the list belong to technology category, with the likes of Paytm, Samsung, and Amazon included, 2019 survey by Ipsos said.

    11:40 (IST)18 Oct 2019
    Reliance Industries aims to be zero net debt firm by FY20

    In Reliance Industries’ 42nd AGM, Chairman Mukesh Ambani has announced a plan to make it a zero net-debt company within the next 18 months. Notably, the firm’s net debt currently stands at Rs 154,478 crore. Sharing the roadmap towards this ambitious goal, Mukesh Ambani announced two major deals with Saudi Aramco and British major BP to to raise an aggregate Rs 1.1 lakh crore. “We expect to complete these transactions within this financial year subject to definitive agreements, due diligence, regulatory and other customary approvals. The commitments from these two transactions are about Rs 1.1 lakh crore,” Mukesh Ambani said.

    11:38 (IST)18 Oct 2019
    Mukesh Ambani’s quotes which chart Reliance Industries journey to becoming India’s most valued company

    Within the next few years, Jio will empower the equivalent of two-thirds of Europe’s population to enjoy a world-class digital services in India., Mukesh Ambani said recently. “Since its inception about 50 year ago, Reliance has contributed more to India’s national wealth than any other business group,” Mukesh Ambani said. Notably, a recent report by Institute for Competitiveness, finds that Reliance Jio’s disruptive entry into the industry has led to at least Rs 60,000 crore in annual savings for Indian consumers.

    11:34 (IST)18 Oct 2019
    Reliance Industries now a Rs 9 lakh crore firm was founded with meagre Rs 1,000 capital

    “My father founded Reliance in 1966 with one just employee and with a meagre capital of only Rs 1000, or about USD 130 at that time. Even then, his dream was to build Reliance as a world-class and world-scale Indian business conglomerate. He realised his dream in his own lifetime,” Mukesh Ambani said at Financial Times ArcelorMittal Boldness in Business Awards in March-18.

    11:18 (IST)18 Oct 2019
    Sigh of relief for Air India! Oil companies IOC, HPCL, BPCL defer decision to suspend fuel supplies

    State-owned fuel retailers on Friday decided to defer their decision to suspend jet fuel supplies to Air India after the national carrier promised to make regular payments to clear outstanding dues, officials said. The three state-owned oil companies – Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) – had earlier this month threatened to snap aviation turbine fuel (ATF) supplies to Air India at six major airports over payment delays.

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    11:05 (IST)18 Oct 2019
    RIL shares soar to fresh record high; mcap top Rs 9 lakh crore

    Shares of billionaire Mukesh Ambani-led Reliance Industries touched a fresh record high on Friday, propelling the firm’s market capitalisation to hit the crucial Rs 9 lakh crore mark. The rally in shares came ahead of the Q2 results scheduled to be reported today. Reliance Industries shares jumped by more than 2% to hit the day’s high at Rs 1,428. Reliance Industries market capitalisation has swollen to Rs 9.03 lakh crore, making it India’s most valuable firm by market capitalisation. IT giant TCS comes at a distant second with its market capitalisation at Rs 7.67 lakh crore. Reliance Industries Ltd (RIL) is expected to report strong earnings in the September quarter on the back of a recovery in refining margins which is likely to offset weakness in petrochemicals, retail, and telecom operations.

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    10:50 (IST)18 Oct 2019
    RIL hits Rs 9 lakh crore mcap to become India's most valued firm

    Mukesh Ambani-led Reliance Industries surpassed the Rs 9 lakh crore in market capitalisation, on the back of a rally in RIL shares. RIL share price soared more than 2% to hit the day's high at Rs 1,424 on BSE. Mukesh Ambani's firm is now India's most valued at a mcap of more than Rs 9.03 lakh crore, followed by IT giant TCS at Rs 7.67 lakh crore. The Sensex is up about 200 points to 39,257, while the Nifty is trading above the 11,600-mark.

    10:42 (IST)18 Oct 2019
    Zee Entertainment Enterprises Q2 net up 6.7 pc to Rs 412 crore

    Media firm Zee Entertainment Enterprises Ltd (ZEEL) on Thursday reported a 6.73 per cent rise in consolidated net profit at Rs 412.09 crore for the second quarter ended September 2019, driven by strong performance in domestic broadcast and digital businesses. The company had posted a net profit of Rs 386.10 crore in July-September quarter a year ago, ZEEL said in a BSE filing. The company’s total income rose 7.63 per cent to Rs 2,190.13 crore during the quarter under review as against Rs 2,034.79 crore in the corresponding quarter last year. “The growth was driven by the strong performance of domestic broadcast and digital businesses,” the company said. ZEEL’s total expenses in the quarter stood at Rs 1,514.13 crore as against Rs 1,386.45 crore in the year-ago period, up 9.20 per cent. “Our entertainment portfolio continues to grow from strength to strength across all formats and maintained its leading position.

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    10:39 (IST)18 Oct 2019
    Gruh Finance merger with Bandhan Bank completes

    Affordable housing finance company Gruh Finance formally merged with private sector lender Bandhan Bank on Thursday, in accordance with the amalgamation scheme. Formerly, India’s largest mortgage lender HDFC Ltd was the promoter of Ahmedabad-based Gruh. The scheme of amalgamation of Gruh into and with Bandhan Bank was earlier approved by the National Company Law Tribunal’s Kolkata and Ahmedabad benches. Shareholders of the Kolkata-headquartered bank had approved its proposed acquisition of Gruh Finance in July. About 99.36% shareholders of the lender, who had participated in the process, had voted in favour of the proposed “Scheme of Amalgamation”.

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    10:21 (IST)18 Oct 2019
    Trade differences with US narrowing, hoping for trade deal soon, says Nirmala Sitharaman

    There has been narrowing of trade differences between India and the US, Union Finance Minister Nirmala Sitharaman said, hoping that the two countries be able to enter into a trade deal soon.”I hope to have an agreement sooner. Obviously narrowing (of difference) is happening,” she told a group of Indian reporters. Sitharaman, who is here to attend the annual meeting of the International Monetary Fund and the World Bank, was responding to a question on the status of the India-US trade deal currently been negotiated between the two countries. The commerce ministry is working on it and hope that the negotiations will get concluded sooner, she said..”I know the intensity with which the negotiations are going on and a few issues on which they could be some differences are being sorted out. I hope they will be an agreement sooner,” she said.

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    10:18 (IST)18 Oct 2019
    DHFL reports Q2 net loss of Rs 242 crore

    Debt-ridden housing finance firm DHFL on Thursday reported a consolidated net loss of Rs 242.48 crore for the second quarter of the current fiscal. The company had posted a net profit of Rs 431.71 crore in the corresponding July-September period of 2018-19. DHFL said the losses registered in Q2 of this fiscal were fully attributable to owners of the parent (company)

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    10:15 (IST)18 Oct 2019
    Domestic air passenger traffic growth slows for four months in a row in September

    Indian aviation sector continues to feel the slowdown blues with domestic air passenger traffic down for the fourth consecutive month in September, data from aviation watchdog DGCA showed. Amid a range of factors from the economic slowdown, lean travel season and declining capacity growth, the air passenger numbers fell from 11.79 million in August to 11.53 million passengers in September, as per DGCA data released on Thursday. Earlier, a Cleartrip official had told Financial Express Online that air traffic growth is expected to be in lower single digits this year. “Multiple reports had put the expected growth number between 15-18%. However, what we have seen so far is about 3%. It is because of lesser capacity expansion,” Balu Ramachandran, Senior VP, Cleartrip, told the publication in an interview this week.

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