Reliance Q4 results quash estimates and soar high
What's the story
Dhirubhai once said, "Meeting the deadlines is not good enough, beating the deadlines is my expectation." His son may have just rehashed it and said, with Q4 results at hand, "Meeting the estimates is not good enough, beating the estimates is my expectation." It's fictional yet seems true, when you look at assumptions made and then at Q4 results. The numbers speak for themselves.
Numbers
Consolidated net profit and total income
The net profit of RIL stands at Rs. 8,053 crore marking an 11.54% growth, compared to Rs. 7,220 crore reported in the same quarter last year. On a quarter-on-quarter basis it rose 6.8%. Total income on a year-on-year basis is currently Rs. 94,825 crore, which marks a growth of 43.78% from Rs. 65,950 crore that it raked in the same quarter last year.
GRM
Gross refining margin (GRM) and dividend offered
In its Q4 results, RIL projected a GRM of $11.5 a barrel, while in the previous year for the same quarter it had reported GRM of $10.8 a barrel beating Singapore's benchmark GRM, which stood at $6.5 per barrel. It is going to give its shareholders a dividend of Rs. 11 per fully paid-up equity share of Rs. 10 each for FY 2016-17.
Jio
Reliance Jio will bring home profits soon
Shareholders heaved a sigh of relief when RIL finally decided to charge 108.90 million Jio subscribers for its services. Although, the losses of RIL's telecom arm have ballooned up to Rs. 22.5 crore compared to the Rs 7.46 crore a year ago, it is expected to rake profits in the coming year, once it emerges as the market leader.
Pinch
Enough in the war chest to take the Jio hit
RIL has Rs. 24,790 crore dedicated to its general reserve, so the loss of Jio is something that will not faze the company more than a small pinch. With the firm's consolidated refining revenue standing at Rs. 72,045 crore, an almost 50% jump against Rs. 48,063 crore reported in the same period last year, there is hardly anything to worry about.
Future plans
Firm to push Jio aggressively
Reliance Jio has already seen investments worth Rs 1.79 lakh crore to bolster its growth and by June-end will see an investment of Rs. 18,000 crore more by RIL, so that, their latest venture doesn't run out of gas anytime soon. Jio is slated to add 100,000 more towers to its network in near future. One can almost feel Airtel crying its heart out.
Ambani
This is not RIL's first or last rodeo
RIL's numbers are what you expect them to be- solid, steady and unwavering. RIL is one of the behemoths that is too large to fail and if reaches a hiccup on one end it can supplement it with excess on the other end. India's richest man knows what he is doing and he has shown it once more, through results instead of words.