Reliance Industries (RIL) chairman and managing director Mukesh Ambani on Monday addressed the shareholders of the company at its 42nd annual general meeting (AGM).
Ambani stated that the slowdown in some sectors of economy is temporary, adding that India has potential to grow into $10 trillion economy by 2030.
Mukesh Ambani revealed a roadmap to becoming a zero net debt company in the next 18 months.
Saudi Aramco signed a non-binding letter of intent to acquire a 20% stake in the oil to chemicals division of Reliance Industries valued at an enterprise value of $75 billion.
RIL will get Rs 7,000 crore by selling 49% stake in its fuel retail business to BP. Ambani promised more dividends and bonus issues to shareholders.
RIL will move towards listing of Jio and Reliance Retail within the next five years, Ambani said.
Reliance JioFiber broadband services are set to launch from 5th September. Reliance Jio's digital set-top box will have ultra high-definition entertainment, virtual reality content, multi-party video conferencing, voice-enabled virtual assistants, interactive gaming, home security and other smart-home solutions.
Jio is expected to roll out broadband services in three key offerings - base-pack (broadband only), bundled pack (broadband + TV offering) and high-end converged pack with the Internet of Things (IoT) devices.
Jio Fibre will offer internet speeds of 100 megabytes per seconds (mbps), going up to 1,000 mbps, to be priced at Rs 700 to Rs 10,000 a month, the RIL chairman said. He also mentioned that the voice calls from Jio Fibre fixed line phones to anywhere in the country will be free for life. Jio will provide unlimited ISD calling service from Jio landline at fixed monthly rental of Rs 500 to US and Canada.
Under a Welcome Offer, Jio Fiber customers opting for annual plan will get a new Jio Forever plan, under which a full HD TV or a Home PC and 4k set-top box will be given for free.
Jio Fiber will launch a premium service where customers can watch movies at home on the same day they are released in theaters. This service will be launched in the middle of 2020, Ambani added.
Reliance Jio has invested Rs 3.5 lakh crore towards creating a state-of-the-art digital infrastructure across India, with the largest optical fiber footprint. More than 10 million customers are signing into Jio every month, Ambani said.
Reliance Retail is the only Indian retailer to be ranked in the Global 100 top retailers. Over the next 5 years, it aims is to be amongst the world's top 20 retailers. The retail business has grown phenomenally, registering a 7-fold increase in revenue and a 14-fold increase in profit in the last 6 years. Relentless focus on operating discipline has resulted in a 3-fold rise in per store productivity in last 5 years, Mukesh Ambani said.
RIL's retail arm will soon unveil Reliance New Commerce, an initiative to digitally connect kirana stores across the country. The purpose of 'new commerce' is to transform unorganised retail into organised retail. New commerce is a $700-billion business opportunity, said Mukesh Ambani.
On consolidated basis, RIL's net profit rose 6.8% to Rs 10104.00 on 21.9% rise in net sales to Rs 1,56,976 crore in Q1 June 2019 over Q1 June 2018.
Outstanding debt as on 30 June 2019 was Rs 288,243 crore compared to Rs 287,505 crore as on 31 March 2019.
Cash, cash equivalents and marketable securities as on 30 June 2019 were at Rs 131,710 crore ($ 19.1billion) compared to Rs 133,027 crore as on 31 March 2019. These were in bank deposits, mutual funds, CDs, Government Bonds and other marketable securities.
Shares of RIL rose 0.87% to settle at Rs 1162 on Friday, 9 August 2019. Domestic equity market is shut today on account of Bakri Id.
The stock had underperformed the market over the past one month, falling 9.18% compared with 2.97% fall in the Sensex. The stock underperformed the market in past one quarter, sliding 7.42% as against Sensex's 0.06% fall. The stock had also underperformed the market in past one year, declining 4.59% as against Sensex's 1.16% fall.
RIL is engaged in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.
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