Reliance Industries had so many “breaking news” today. First, Mukesh Ambani announced that he is forgoing his entire compensation even as he announced salary cuts and deferment of performance linked payments for his employees in the most hard hit business of all – hydrocarbon.
Next was the biggest rights issue in the India’s corporate history – the first in thirty years, RIL announced a Rs.53,125 crore in the ratio of 1 equity shares for every 15 shares held at a price of Rs.1257/share. Today, the stock closed at Rs.1467.05.
The next “breaking news” – RIL ended Q4FY20 with a 45.5% (QoQ) and 39% (YoY) decline in consolidated net profit at Rs.6348 crore. Falling oil prices and shrinking demand led to an exceptional loss of Rs.4267 crore. What really saved the day was the 73% (QoQ) jump in Reliance Jio’s net profit at Rs.2331 crore with 387.50 million subscribers.
A detailed look at the performance: