Insta
Telecom ‘Liquidates’ Gold: Jio To Contribute More Revenues Than Petrochemicals To RIL’s Balance Sheet, Says Report
- According to the latest report by Kotak Institutional Equities (KIE), Reliance Jio’s contribution to Reliance Industries’ overall earnings in 2021 will be higher than that of the group’s petrochemical and refining businesses, reports Financial Express (FE).
- While the overall Ebitda (earnings before interest, tax, depreciation and amortisation) for Reliance Industries Limited (RIL) will reach Rs 1.2 lakh crore by 2021, the share of digital services, including Jio, will touch Rs 78,800 crore.
- In comparison, the petrochemicals segment is estimated to contribute only Rs 38,400 crore by 2021. The refining and marketing businesses will have revenues to the tune of Rs 33,900 crore. On the other hand, the oil and gas segment’s contribution will be reduced to a low of Rs 900 crore.
- Changing Dynamics
- In the third quarter (Q3) ending in December, Reliance posted profits of Rs 10,251 crore, up by 8.82 per cent compared to last year’s Rs 9,420 crore. Higher price realisations drove the jump in its petrochemical, telecom and retail businesses.
- Also, Reliance Jio’s net profits increased by 22 per cent on a quarter-to-quarter basis and 65 per cent on a yearly basis.
- Signalling a shift in the direction of the conglomerate’s growth, the combined revenues of Reliance Retail and Reliance Jio reached Rs 44,615 crore in Q2 (2018-19), exceeding the Rs 43,745 crore sales reported by RIL’s petrochemicals business.
- Also Read: ‘Jio Is Ready To Deploy 5G, Will Double Employment, Investment In State’: Mukesh Ambani At Vibrant Gujarat Summit
(Abhijit Bhatlekar/Mint via Getty Images)
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