RIL's performance in FY21 exceeded expectations, despite pandemic: Mukesh Ambani
Mumbai, June 24, 2021
Reliance Industries Limited (RIL) Chairman & Managing Director Mukesh Ambani today said the company's business performance and financial success over the last year had exceeded expectations, despite the COVID-19 pandemic.
Addressing the 44th annual general meeting of the company here, Ambani reported that, even in a challenging environment, its consolidated revenue was nearly Rs 540,000 crore, with a sharp increase from the consumer business.
"Our consolidated EBITDA was nearly Rs 98,000 crore, and almost 50% of the EBITDA was contributed by consumer businesses. One of these consumer businesses, Retail, is only about a decade old. The other business, Jio, is only five years old.
"Our net profit for the year was Rs 53,739 crore, higher by 34.8% compared to the previous year. Despite the pandemic, we increased our dividends this year," he said.
Ambani said that, at Rs 1,45,143 crore (US$ 19.9 billion), RIL continued to be India's largest exporter accounting for 6.8% of India's total merchandise exports across 107 countries. The company added nearly 75,000 new jobs in the past year.
"We are committed to creating and enabling large-scale employment opportunities, which is one of India's most urgent national tasks.
"We continue to be India's highest payer of customs and excise duty in the private sector with payments of Rs 21,044 crore. We are amongst the highest payers of GST and VAT at Rs 85,306 crore.We are amongst the highest payers of Income Tax in the private sector paying Rs 3,213 crore," he said.
Ambani recalled that, in FY 2021, Reliance successfully carried out the largest ever capital raise by any company globally in a year, notwithstanding the COVID challenges. The capital raises exceeded Rs 324,432 crore (USD 44.4 billion) through equity in Jio Platforms and Retail, Rights Issue and asset monetization.
"The investors included some of the best and marquee names across the world; across sovereign wealth funds, and private equity. This capital raise is a strong vote of confidence by global investors in India's growth potential. It reflects their faith in the ability of your company's management to execute ambitious projects and long-term value creation plans," he said.
"All of these helped Reliance achieve a net debt-free balance sheet much ahead of March 2021, a promise I had madetwo years ago," he said.
Turning to individual businesses in the group, Ambani said Jio Platforms is the leading digitial company in India with leadership in wireless connectivity and an unmatched suite of apps and platforms.
He said Jio's onsolidated revenues in the past year were Rs 86,493 crore, with EBITDA of Rs 32,359 crore. It had a net addition of 37.9 million subscribers during the year. It now serves over 425 million consumers on its network and has revenue market leadership in 19 out of 22 circles.
Ambani said Reliance Retail continued to be the undisputed leader in organised retailing in the country, with scale that is more than six times the next competitor.
He said Retail had revenues of Rs 153,818 crore, and EBITDA of Rs 9,842 crore and was by far the leader in the grocery, electronics and apparel categories.
Ambani said Reliance's Oil-to-Chemicals (O2C) business faced unprecedented challenges as the beginning of the year was marked by severe economic contraction, leading to demand destruction and supply chain dislocations.
"We focussed on safe operations of all our facilities. We were probably the only company globally that operated its facilities at near full capacity and was profitable in every quarter.
"Our consolidated revenues during the year were Rs 320,008 crore, with EBITDA of Rs 38,170 crore. We managed to maintain EBITDAmargin at 11.9% despite volatility in both feedstock and product prices.
"We operationalised the JV with bp in fuel retailing, using technology and innovation to deliver new customer value. The demand and margin environment for petrochemicals had recovered to pre-COVID levels by March. I am confident that our O2C business will benefit from the strong global growth environment.
"As an important part of this vision of achieving accelerated growth, we look forward to welcoming Saudi Aramco as a strategic partner in our O2C business. Despite several challenges due to COVID-19, we have made substantial progress in the past year in our discussions. These discussions have been held in the spirit of mutual commitment to convert our long-standing relationship into a perpetual partnership.
"This continued engagement and resolve from both sides, even during this pandemic, is a testimony of strong relationship between Saudi Aramco and Reliance. I expect our partnership to be formalised in an expeditious manner during this year, after obtaining required regulatory clearances.
"In our E&P business, bp and Reliance commenced production in KGD6 basin. Our JV brought two of our three toughest deep water gas projects to production. This has been accomplished in record time and set a new global benchmark for capital costs. We are now on course to bring the third Deepwater MJ field onstream in the last quarter of 2022. Together we will produce 30 MMSCMD gas production by 2023. This will establish Reliance again as one of the largest producers of gas in India, meeting 20% of India's gas demand. E&P will again be a source of significant value and sustained earnings growth over the next decade," he said.
Ambani spelt out at length the company's ambitious strategy and roadmap for its New Energy and New Materials business.
On Jio, he said it had become the first operator outside China to cross 400 million mobile subscribers in a single country.
"Jio is today the world's second largest mobile data carrier handling monthly traffic of over 630 crore gigabytes. This is nearly 45% growth in data consumption in the last year alone, a testament to the rapid pace at which India is digitizing," he said.
"During the past year, we also made the necessary capital investments to further strengthen our market position and growth. During recent spectrum auctions, we invested Rs 57,123 crore to acquire significant additional spectrum, making Jio the largest operator of 4G spectrum in India. And we have operationalized nearly 100% of this additional spectrum," he said.
Ambani said another Rs 15,183 crore had been invested in expanding the network infrastructure. These investments had created the capacity to on-board an additional 200 million customers on Jio's network.