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Tag: Reliance Industries Limited

  • Reliance Industries to sell 3.1% stake in Network 18

    Reliance Industries to sell 3.1% stake in Network 18

    MUMBAI: In a move to bring down its shareholding to permitted levels, Mukesh Ambani led Reliance Industries Limited (RIL) is looking at offloading 3.25 crore shares from its recently acquired Network 18 Media & Investments Limited (NW18). Pegged at around Rs 200 crore, the company will sell 3.10 per cent of the equity capital of NW18.  

     

    The decision has been taken to bring down the aggregate shareholding of the promoter and promoter group to 75 per cent and increase the public shareholding to 25 per cent as mandated by Clause 40A of the listing agreement pursuant to Securities Contract (Regulation) Rules, 1957.

     

    In this regard, Shinano Retail, which is a wholly owned subsidiary of RIL, has issued a notice of offer for sale of 3.25 crore shares of NW18 through the stock exchange mechanism in accordance with the SEBI circulars.

     

    It can be noted that RIL acquired Network18 and TV18 Broadcast for an estimated sum of Rs 4000 crore through its arm Independent Media Trust (IMT) on 29 May, 2014. 

     

    RIL is one of India’s largest private sector company, with a consolidated turnover of Rs 3,88,494 crore (US$ 62.2 billion), cash profit of Rs 36,291crore (US$ 5.8 billion) and net profit of Rs 23,566 crore (US$ 3.8 billion) for the year ended 31 March, 2015.

  • Reliance Retail reports growth in FY-2015 and Q4-2015

    Reliance Retail reports growth in FY-2015 and Q4-2015

    BENGALURU: Reliance Industries Limited (RIL) retail segment – Reliance Retail is a tiny fraction of the revenue that India’s largest private corporate reports. However, this segment has been growing consistently, quarter on quarter.

     

    For FY-2015, the segment reported a revenue growth of 21.2 per cent to Rs 17,640 crore from Rs 14,556 crore in FY-2014. The segment’s earnings before interest and tax (EBIT) more than trebled (increased by 253.4 per cent) to Rs 417 crore in FY-2015 from Rs 118 crore in the previous year.

     

    Note: 100,00,000 = 100 lakh = 10 million = 1 crore

     

    Revenue in Q4-2015 grew 31.1 per cent to Rs 4,788 crore from Rs 3,653 crore in Q4-2014 and grew 2.2 per cent from Rs 4,686 crore in Q3-2015. PBIT in Q4-2015 more than quadrupled (increased by 333.3 per cent) to Rs 104 crore from Rs 24 crore in the year ago quarter, but declined 21.8 per cent from Rs 133 crore in the previous quarter.

     

    RIL claims that it maintained the distinction of being India’s largest retailer. It says further that it consolidated its leadership position in all focus sectors. The company added 930 stores and nine lakh square feet of operating space in the year across the sectors. As on 31 March, 2015, Reliance Retail operated 2,621 stores across 200 cities, with over 1.25 crore square feet space.

     

    The company says that Reliance Retail grew its presence through its partnerships with the likes of Marks & Spencer, Grand Vision and Payless Shoesource, which continued its pace of robust growth. Reliance Brands continued to make more luxury brands available to the Indian consumers by expanding presence through various partner brands.

     

    Overall, though RIL consolidated revenue (turnover) decreased by 33.3 per cent to Rs 70,863 crore in Q4-2015 from Rs 1,06,208 crore in Q4-2014, its consolidated net profit increased by 8.5 per cent to Rs 6,381 crore from Rs 5881 crore in Q4-2014.

     

    RIL achieved a turnover of Rs 3,88,494 crore for FY-2015, a decrease of 13 per cent, as compared to Rs 446,339 crore in the previous year. The company says the decline in turnover reflects sharp fall in crude oil prices during the second half of the year. However, profit after tax was higher by 4.8 per cent at Rs 23,566 crore as against Rs 22,493 crore in the previous year.

     

    Company speak:

     

    RIL chairman and managing director Mukesh D. Ambani said, “FY 2015 has been a very successful and important year for Reliance. In a time when the collapse of crude oil prices unsettled the hydrocarbons markets, our refining business delivered record earnings. The earnings power demonstrated by our hydrocarbon businesses in this environment validates our philosophy of investing in world-scale, cost competitive assets, cutting-edge technology and the talent of people. This year we also made giant strides in our quest to sustain Reliance’s growth momentum with the highest-ever capital investment into our hydrocarbon business and our next-generation digital services initiative. Our organized retail business maintained its high growth trajectory with a wider pan-India footprint. Particularly gratifying, we achieved this, while maintaining our track-record of adhering to highest standards of safety and operational excellence.”

  • Sun TV slams reports about stake sell to Reliance Industries

    Sun TV slams reports about stake sell to Reliance Industries

    MUMBAI: Kalanithi Maran owned Sun TV network has slammed media reports suggesting a possible sell out to Mukesh Ambani’s Reliance Industries Limited (RIL).

     

    As was reported earlier by Indiantelevision.com, media reports published on 20 March, 2015 claimed a possible takeover of Sun TV by Reliance Industries Limited (RIL) and the Bombay Stock Exchange (BSE) had sought clarification from both the companies, which are listed on the bourse.

     

    Responding to the clarification notice from BSE, Sun Group CFO SL Narayanan said, “There is absolutely no truth in the news report that Sun TV is considering a stake sale.”

     

    Echoing the same, RIL in its reply to the BSE has said, “We wish to state that there is no truth in what a website in question has chosen to write. Do please note that the reporter did not ask us about the facts.”

     

    In a notice to both, BSE had earlier in the day said, “The Exchange has sought clarification from Sun TV Network Ltd and RIL with respect to news article appearing on ET Now on 20 March, 2015 titled “Tehelka reports – RIL considering acquiring Sun TV, RIL officials meeting at Chennai office to work out deal & deal in works for last 3 months.”

       

  • BSE seeks clarification from Sun TV following media reports of RIL buy out

    BSE seeks clarification from Sun TV following media reports of RIL buy out

    MUMBAI: It was on 20 March 2015, that a media house published a speculative report stating possibilities of Reliance Industries Limited (RIL) taking over Kalanithi Maran’s Sun TV Network.

     

    Last year, RIL had shocked the media industry by taking over one of India’s largest media companies – Network18.

     

    The report further claims senior officials of RIL holding numerous meetings in Sun TV’s Chennai office to work the deal out.

     

    Mukesh Ambani led Reliance Industries, which already has made its foray into the media sector by Network18’s acquisition, if at all takes over Sun TV, will put a huge question mark on the credibility and freedom of media.

     

    Following the developments, the Bombay Stock Exchange (BSE) has sought for a clarification from both Sun TV and RIL.

     

    In a notice to both, BSE has said, “The Exchange has sought clarification from Sun TV Network Ltd with respect to news article appearing on ET Now on 20 March, 2015 titled “Tehelka reports – RIL considering acquiring Sun TV, RIL officials meeting at Chennai office to work out deal & deal in works for last 3 months.” 

     

    The reply from both the parties is awaited.

     

  • Q2-2015: Reliance Retail juggernaut grows 20 per cent y-o-y

    Q2-2015: Reliance Retail juggernaut grows 20 per cent y-o-y

    BENGALURU:  The Mukesh Ambani led Reliance Industries Limited (RIL) announced its Q2-2015 results on 13 October reporting a y-o-y  de-growth of 4.3 per cent in consolidated turnover to Rs 1,13,396 crore in Q2-2015 from Rs 1,18,439 crore in Q2-2014, and a growth of 5.1 per cent versus the immediate trailing quarter Q1-2015 turnover of Rs 1,07,905 crore. During HY-2015, the company’s revenue grew just 1 per cent to Rs 2,21,301 crore from Rs 2,19,054 crore in HY-2014.
     
    The company’s organised retail segment contribution to RIL’s turnover grew from 2.93 per cent (Rs 3470 crore) in Q2-2014 to 3.67 per cent (Rs 4167 crore) in Q2-2015, registering a 20.1 per cent growth y-o-y. In Q1-2015, RIL’s retail segment contributed 3.71 per cent (Rs 3999 crore) to the company’s turnover registering a 4.1 per cent growth q-o-q.  In FY-2014, the segment had reported revenue of Rs 14,566 crore or 2.69 per cent of RIL’s turnover of Rs 5,41,599 crore. A Reliance earnings release for Q2-2014 says reports EBDIT figures for its retail segment at Rs 186 crore, recording a y-o-y EBDIT growth of 96 per cent.

    This quarter, the company’s overall operational outlet count crossed 2000 with a presence in 155 cities of the country.  Some of the store formats under Reliance Retail Brands include Reliance Retail, Reliance Market, Reliance Fresh, Reliance Digital, Reliance Trends, Reliance Footprint and Reliance Jewels.

     

    In the overall context of RIL numbers, its retail segment figures may seem small, but how many companies can boast of annual revenues of about Rs 15,000 crore plus, that the segment must cross this fiscal? Not too many.

     

    According to an Economic Times report, in comparison, Tata group’s retail divisions, including Titan, Croma, Trent and Landmark, had revenue of about Rs 17,000 crore. Kishore Biyani’s Future Retail had revenue of Rs 11,336 crore in fiscal 2014.

     

    India’s retail industry has been pegged at a quarter of India’s gross domestic product (GDP) about $525 million or Rs 31.5 lakh crore and is expected to double over the next five years leading to 2020. There is more than enough scope for the company’s organised retail segment to grow and contribute in a big way to RIL’s numbers over the next few years.

     

     

    Click here for the financial statement

     

  • Reliance Industries’ execs meet Network18 employees

    Reliance Industries’ execs meet Network18 employees

    MUMBAI: The Network18 office in Empire Mills Complex, in central Mumbai had some new visitors on 8 July 2014. Alok Agrawal who has been appointed as group COO of Network18, non-executive director Rohit Bansal and Reliance Industries Ltd’s media director Umesh Upadhyay held a town hall meeting with the entire staff of TV18 that includes CNN-IBN, IBN7, IBN Lokmat and History TV18.

     

    Attendees say it was a feel-good meeting and to reassure the employees about RIL’s honorable intentions for them all. The employees were told that the megacorp has full faith in them and hence had invested in the Network18 group and the objective was to make it a global brand.

     

    “There is no oil beneath your ground, if you are concerned about our motive,” is what one of them was heard to have said. Narrating an incident of the day founder Raghav Bahl finalised the deal, one of the members said, “Raghav on that day told the RIL executives that he had brought up the company to Rs 5000 crore and now you see if you can take it to Rs 50,000 crore.”

     

    They were further told that going forward the road ahead would be shared with them.  “It has been only 30 hours since the announcement of us acquiring Network18 has been made,” said one of them. “But you should know that 4G is very important for us as in the future smart phones are going to become very powerful. We are all happy that Raghav (Bahl) is continuing to give his support to the company.”

     

    A similar meeting had taken place a day earlier with the employees in the head office in Delhi where special assurance was given to the CNBC TV-18 employees that “they need not fear publishing any story.” Employees in both places were told that they can even report about RIL but not publish stories without any facts.

     

    One of the executives said that the main point in the whole RIL-Network18 deal was an exchange between two people (referring to Mukesh Ambani and Bahl) but everything else stays the same.

     

    A source from RIL says that the exercise is being conducted so that employees are personally met and assured rather than have them believe false rumours through the media. A few more meetings are expected to be held in the coming days.

  • TV18 gets independent directors’ nod for Reliance open offer

    TV18 gets independent directors’ nod for Reliance open offer

    MUMBAI: The Committee of Independent Directors (IDC) linked with TV18 Broadcast has green signaled the open price offer made by Independent Media Trust (IMT) to public shareholders. The go ahead was given by IDC chairman Manoj Mohanka and IDC member Hari S. Bhartia.

     

    The offer made by IMT along with Reliance Industries Limited (persons acting in concert – PAC1) and Reliance Industries Investments and Holding Limited (PAC2) to the public shareholders of TV18 Broadcast was to acquire up to 44,65,10,110 equity shares at a price of Rs 30.18 per share. JM Financial Institutional Securities is the manager of the offer.

     

    The announcement was made through a notice issued by TV18 to the BSE which stated that the IDC “believes that the open offer is fair and reasonable and in line with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.”

     

    According to the IDC, the offer price is higher than the volume weighted average price of the Equity Shares for a period of 60 trading days immediately preceding the date of public announcement. The IDC also gave the go ahead after it sought external financial advice from Price Waterhouse & Co that advised that as of 29 May 2014, the offer price pursuant to the offer is fair and reasonable from the financial point of view.

     

    The approval for the open offer was made after the IDC reviewed (a) the public announcement in connection with the offer dated 29 May 2014 issued on behalf of IMT and the PAC’s public announcement; (b) the detailed public statement in connection with the offer published on behalf of IMT and PAC’s on 5 June 2014 and (c) the draft letter of offer (DLOF) dated 11 June 2011.

  • No government interference in acquisition of Network 18 by RIL: Prakash Javadekar

    No government interference in acquisition of Network 18 by RIL: Prakash Javadekar

    GOA: “There is no government interference in the acquisition of Network 18 by Mukesh Ambani owned Reliance Industries Limited,” announced I&B Minister Prakash Javadekar, brushing aside any rumour about BJP led government having a role to play in the recent acquisition of Network 18 by RIL. The newly appointed I&B Minister was addressing the gathering on the final day of GoaFest. Javadekar also accepted that cross media ownership was debatable and will be addressed soon.

     

    “The I&B Ministry will always protect and respect the freedom of press,” emphasised Javadaker. The Minister further went on to say that I&B Ministry is looking at making both Doordarshan and All India Radio competitive. “It is my dream to make Doordarshan a success story,” he said.

     

    “I would address the grievances of all cable operators if they take DD in the prime brand,” added the Minister on a lighter note. “The Ministry will take into consideration all the viewpoints of various stakeholders of the media and then take necessary actions in the near future,” he announced.  

     

    The biggest challenge for the Minister will be the smooth rollout of the remaining two phases of digitisation. While in phase III of digitisation 11 crore set top boxes are expected to be installed, Javadekar is of the view that the set top boxes manufactured in China do not guarantee good value for money. “The Ministry is looking at creating opportunities to manufacture set top boxes locally. We will soon meet with both the Finance and Commerce Ministries to take this forward,” he said.  

     

    Javadekar also touched upon the issue of FM radio in India. “I have already met all the FM radio heads and the way forward will be declared shortly.  The age old batteries of transmitters of AIR stations will soon get some ‘air’ as the Ministry is looking at replacing them with new ones,” he announced.  

     

    The Minister, who believes in the age old thought that good advertising cannot make a bad product good and strongly feels that it holds true in today’s world too, also used the platform to address the advertising fraternity. “The difference that the nation will see now is not only difference in leadership but in its vision too,” he said.

     

    Javadekar too has the experience of creating campaigns. The Minister who had crafted campaigns for his party away back in 1989 in Maharashtra said, “I truly understand the system that goes behind each campaign.”

     

    Javadekar is impressed with what ASCI has been initiating and said the Ministry will give its complete support to the association. He also mentioned that issues related to ratings, if any, should be treated privately by advertisers and broadcasters unless there is conflict and they seek government intervention.

     

    The Modi government has truly used the power of social media to scale up its communications. Javadekar said that under his leadership he will review the party’s social media activities very keenly. 

     

    It will be interesting to see what Javadekar brings on table in the coming days for the media fraternity as a whole! 

  • Sensex sees a high with Modi win

    Sensex sees a high with Modi win

    MUMBAI: It is not only that BJP and the citizens of the largest democracy are rejoicing over the victory of Narendra Modi, who is set to swear in as the next Prime Minister. The hope that Modi had shown to people during his campaigns, has reflected on the sensex today. The S&P BSE Sensex had managed to rally over 1400 points in quick time on Friday.

    At 11:00 a.m.; sensex was trading 982 points higher or 4.1 per cent at 24887.82. It hit a low of 24,271.54 and a high of 25,375.63 in trade today. According to a news report in the Economic Time, a few cash rich companies will be a priority for investors now.

     

    According to another report by Financial Express, shares of Mukesh Ambani owned Reliance Industries Limited (RIL) increased by as much as 9 per cent.

     

    Mukesh Ambani-led Reliance Industries scrip surged 8.47 per cent to touch one-year peak of Rs 1,142.50 at the BSE. Shares of another listed-entity Reliance Industrial Infrastructure rose by 3.94 per cent to Rs 455.85.On the NSE, the blue-chip stock zoomed 8.71 per cent to hit its fresh 52-week high of Rs 1,145.25.

     

    Another market report available on Economic Times.com, mentions how the shares of the Adani group of companies have escalated to as much as10 per cent. The Group head Gautam Adani is known to be close to India next PM Narendra Modi as the mandate of the 16 Lok Sabha gave a humongous victory to the BJP.

     

    This Gujarat based company along with RIL, which has its oil refinery at Jamnagar is expected to gain the most with Modi’s win. At 09:30 a.m.; Adani Ports & Special Economic Zone was trading 3.4 per cent higher at Rs 227.85, Adani Enterprises was up 6.2 per cent to Rs 532.45 and Adani Power was trading 4.4 per cent higher at Rs 57.40. 

     

    The rupee meanwhile rallied to a 11 month high of 58 of 58.71 against the dollar early today due to persistent selling of the US currency by both banks and exporters on hopes of higher foreign capital inflows. The weakness of the dollar in the overseas market has also boosted the rupee value.

     

    Major business news channels and newspapers have said the stocks of certain companies like ICICI Bank, Axis Bank, PNB, BOI, Yes Bank, RIL, IOC, ONGC, GAIL, HPCL, Maruti Suzuki, M&M, Motherson Sumi and Apollo Tyres have gone bullish.. According to Economic times, United Phosphorus, Dhanuka Agritech, Lupin, Divis, Aurobindo Pharma, L&T, Voltas, Crompton Greaves, Cummins, TCS, Mind Tree, Tech Mahindra, HCL Tech, Tata Steel, Century Textile, DB Corp, Emami Ltd, IRB Infra, Havells India and Welspun India will outperform as the new government takes charge.