Up­beat on Re­tail, Tele­com

The Economic Times - - Econ­omy: Macro, Mi­cro & More -

The seg­ment’s EBIT (earn­ings be­fore in­ter­est and tax) mar­gin rose to13.3% from 8.7% a year ear­lier, in sharp con­trast to the oil and gas ex­plo­ration busi­ness where low prices and fall­ing out­put led to the mar­gin nar­row­ing to 0.9% from 19.5%. Chair­man Mukesh Am­bani said the down­stream hy­dro­car­bon busi­nesses saw a year of “out­stand­ing achieve­ment”. He was also up­beat about the per­for­mance of the re­tail and tele­com busi­nesses. “Look­ing ahead, we are fo­cussed on en­sur­ing a flaw­less start up and sta­bil­i­sa­tion of the new growth plat­forms across our hy­dro­car­bon and con­sumer busi­nesses. The com­mer­cial roll­out of our Jio (broad­band) ser­vices this year will dig­i­tally en­able a bil­lion In­di­ans and pro­pel growth for In­dia and Reliance,” he said.

The com­pany spent .₹ 112,995 crore on cap­i­tal ex­pen­di­ture in the year ended March while its debt in­creased to .₹ 181,079 crore from .₹ 160,860 crore at the end of 2014-15. “Our capex plans are mov­ing as sched­uled and the full im­pact of in­vest­ment on Reliance Jio and ex­pan­sion of re­fin­ery and petro­chem­i­cal busi­ness will be seen in 2016-17,” Joint CFO V Srikanth told re­porters.

For 2016-17, Reliance ear­marked $9 bil­lion on capex, which would in­clude $3.5 bil­lion on re­fin­ery and petro­chem­i­cal ex­pan­sion and $4.5 bil­lion on Reliance Jio. The com­pany didn’t com­mit on the launch date for the Reliance Jio broad­band ser­vices.

The com­pany’s or­gan­ised re­tail busi­ness posted a 4.3% se­quen­tial de­cline in rev­enue in the fourth quar­ter, but grew 21% year-on-year.

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