Mukesh Ambani’s RIL to invest Rs. 1.5 lakh cr over 3 years, shares fall

June 6, 2013   ·   0 Comments   ·   148 Total Views   ·   http://www.canindia.com/f45hu

NEW DELHI

Reliance Industries shares fell over 1.5 per cent on Thursday as chairman Mukesh Ambani wrapped up his nearly 40-minute speech at the company‘s 39th annual general meeting.mukesh-ambani

Traders expected Mr Ambani to outline the company‘s 4G plans and the company‘s stand on gas pricing in his speech today. He said Reliance will increase staff in its telecommunication business unit to 10,000 next year from 3,000 currently, but there was no roadmap about a launch.

Overall, the speech was good, but there is disappointment over no major timeline in terms of Reliance Jio rollout, Gaurang Shah of Geojit BNP Paribas said.

Reliance Jio Infocomm, the only company to have nationwide permits for 4G broadband services is yet to start commercial services. In April, Reliance Jio Infocomm announced a Rs. 1,200 crore deal with Anil Ambani’s Reliance Communications.

The biggest announcement Mr Ambani made was a $26 billion investment in his company‘s businesses over three years. Reliance remains undeterred by the current slowdown in the Indian economy, Mr Ambani said.

Reliance, India’s fourth biggest company by market value, has been under pressure from investors over its slowing gas business and its drive into consumer-focused sectors such as telecoms and retail.

Reliance shares have gained after its partner Niko Resources announced a significant gas discovery in the KG-D6 block in the last week of May.

“The new discovery will significantly add to our resource base. This discovery is a testimony to the combined skills of BP and RIL. It is located 2 km from currently producing D1 and D3 gas fields and has exhibited very good results in test. There are more prospects lined up over the next few quarters,” Mr Ambani said.

Reliance expects production of shale gas to be a third of aggregate production this year, Mr Ambani told shareholders. He also said the company would forge long-term partnerships to source crude.

Mr Ambani also highlighted that the company‘s retail business had broken even last fiscal, four years after the company ventured into the sector. Reliance Retail accomplished a significant milestone by crossing Rs. 10,000 crore in the last financial year.

“The retail business achieved cash break even with an EBITDA of Rs. 78 crore. We aim to achieve Rs. 40,000 to Rs. 50,000 crore turnover in the next few years,” Mr Ambani said.

RIL shares traded 1.1 per cent lower at Rs. 791.60 as of 12.01 p.m., underperforming the broader Sensex, which traded down 0.4 per cent at 19,483.

SHARE WITH YOUR FRIENDS!

  • Facebook
  • Twitter
  • Google Plus
  • LinkedIn
  • Pinterest
  • Email
  • Print
  • PDF

By

Tags: , , , , ,


Readers Comments (0)





Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.

Close
Please support the site
By clicking any of these buttons you help our site to get better