Reliance Industries company also announced India’s biggest rights issue of Rs 53,125 crore in the ratio of 1:15 at a price of Rs 1,257 per share. Mukesh Ambani told that despite the daunting challenges arising from the fallout of the global pandemic, their company has once again delivered a resilient performance for FY 2019-20. Their Oil to Chemicals businesses delivered sustained earnings due to its integrated portfolio, cost-competitiveness, feedstock flexibility and product placement capabilities.
So the net profit of Reliance industries dropped 39 per cent to Rs 6,348 crore in the March quarter on the back of a slump in crude oil prices amid pandemic situation of COVID-19, the company said in an exchange filing on Thursday. The company had reported profit of Rs 10,362 crore in the same quarter last year. Reliance reported on Thursday that a 38.73 per cent year-on-year fall in consolidated net profit at Rs 6,348 crore for the quarter ended March 31. Bottomline of RIL took a hit due to an exceptional loss of Rs 4,267 crore during the quarter. For the financial year ended March 31, net profit declined marginally 0.59 per cent YoY to Rs 39,354 crore. The figure stood at Rs 39,588 crore last year.
Reliance Industries’ net profit dropped 39 per cent to Rs 6,348 crore in the March quarter on the back of a slump in crude oil prices amid situation of COVID-19, the company said in an exchange filing on Thursday. The company had reported profit of Rs 10,362 crore in the same quarter last year. Reliance Industries approved a fund raising plan of Rs 53,125 crore via rights issue, which it said was the biggest in India. The ratio would be 1:15 at a price of Rs 1,257. Promoters of the company will subscribe to their full entitlement of the rights issue and also to all the unsubscribed portion.
So during the quarter, Reliance Industries incurred one-time loss of Rs 4,245 crore on the back of non-cash inventory holding losses in the energy businesses due to dramatic drop in oil prices accompanied with unprecedented demand destruction due to this pandemic situation.