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BW Businessworld

Setting New Benchmarks

The retail business continued to scale new heights achieving important milestones in FY20 achieving a turnover of Rs 1,62,936 crore and a store count of 11,784.

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Reliance Industries (RIL) WAS the first Indian company to have crossed Rs 10 trillion in market capitalisation in FY20. It also retained its strong domestic and international credit rating during the year under consideration and also managed to retain its numero uno position once again in BW Businessworld’s real BW 500 list.

RIL was also the highest payer of customs and excise duty in the private sector. In actual terms, RIL contributed Rs 1,15,461 crore to the national exchequer this year.

The petrochemicals-to-communications & media-to-retail giant also provided direct employment to 1,95,618 people in FY20, as per its latest annual report.

“Along with the stake sale to BP in the petro-retail JV, the total fund raise is in excess of Rs 1,75,000 crore. Our net debt was Rs 1,61,035 crore as on 31st March 2020. With these investments, RIL has now become net debt-free,” Mukesh D. Ambani, Chairman and Managing Director, RIL told the shareholders in the company’s annual report.

During FY2019-20, Reliance executed on the next phase of its growth journey, forging transformative partnerships across businesses. “Recognising the pivotal role of Reliance Jio in India’s digital transformation, global technology giants Microsoft and Facebook have partnered with us. With Facebook, the strategic focus of the partnership is India’s micro, small and medium enterprises (MSME), farmers, small merchants and small and medium enterprises (SME) in the informal sector,” Ambani said.

In the energy businesses, Reliance is working to complete the contours of a strategic partnership with Saudi Aramco. “The partnership gives our refineries access to a wide portfolio of value-accretive crude grades and enhanced feedstock security for a higher oil-to-chemicals conversion,” Ambani said.

In the fuel retail business, Reliance and BP formed a new JV to grow the retail service station network and aviation fuels business across India. The consumer businesses continued to establish new milestones, with Reliance Retail and Jio collectively having grown their consolidated EBITDA by 49.3 per cent year on year.

“We delivered a robust performance in our oil-to-chemicals (O2C) business despite the weak global economic environment and volatility in energy markets. Our consolidated EBITDA crossed the Rs 1,00,000 crore mark, a first by an Indian company,” said Ambani.

STELLAR PERFORMANCE: In a volatile environment, Reliance recorded consolidated net profit of Rs 44,324 crore ($5.9 billion) during the year, registering a y-o-y growth of 11.3 per cent (before exceptional items on account of Covid-19). RIL’s consumer businesses accounted for 35 per cent of the company’s consolidated segment EBITDA.

The retail business continued to scale new heights achieving important milestones in FY20 achieving a turnover of Rs 1,62,936 crore and a store count of 11,784. During the year, RIL generated a record EBITDA of Rs 1,02,280 crore, up 10.4 per cent y-o-y.

On the communications front, Reliance Jio continued to play the role of key catalyst in creating the broadband data market in India. In FY20 it emerged as the number one mobile telecom operator in the country by both adjusted gross revenue (AGR) and subscribers. The business recorded revenues of Rs 68,462 crore, as against Rs 48,660 crore in the previous year, with the year-end subscriber base at 387.5 million.

Reliance Jio reported strong financial performance for the year. Segment EBITDA was at Rs 22,517 crore for the year, as against Rs 15,341 crore in previous year.