RIL made investment of $17 bn in 15-16, highest-ever by any corporate in Indian history
04 August, New Delhi
Reliance Industries Limited (RIL) has invested 1,12,000 crore (17 billion dollar) in FY 2015-16, the highest-ever by any corporate in Indian history. This large investment spread across all businesses.
According to the Annual Report of the company released today, Mukesh Ambani, Chairman and Managing Director has said that Reliance recorded its highest-ever consolidated net profit of `27,630 crore (4.2 billion dollar) during the year, a growth of 17.2 per cent in comparison to previous year.
He said, “Strong operating performance from the refining and petrochemicals business led to higher operating profits (PBDIT), which increased by 14.2 per cent to 52,503 crore (7.9 billion dollar). The benefits of low crude oil and energy prices for our downstream businesses clearly outweigh the impact of these factors on our upstream segment, reflecting in the record earnings for the year.”
Ambani in its letter to shareholderts has said that global economic activity remained muted during the year as oil prices remained soft. The oversupply situation continued as oil producing countries vied for market share. Emerging markets dependent on Chinese growth were impacted as China moves from an infrastructure and export economy to a consumption based economy.”
“Despite these macro headwinds, India was resilient and overtook China’s growth rate to become the world’s fastest growing major economy. However, the Indian economy too faced challenges from slow agricultural growth with two consecutive poor monsoons and sharp contraction in exports due to weak global demand and lower commodity prices, he said.
According to RIL annual report, the global oil demand is expected to grow by 1.4 million b/d in CY 2016 and probably by 1.3 million b/d in CY 2017. This is on the back of 1.8 million b/d of demand growth recorded during CY 2015. This cumulative growth of over 4 million b/d of global oil demand over three successive years bodes well for the refining industry.The demand growth for all our key products in the refining and petrochemicals business remained robust in India.
Oil demand in India grew by 10.9 per cent, the highest growth rate seen in the past 15 years. This was led by strong growth of 14.1 per cent in gasoline, 7.5%per cent in diesel, 8.8 per cent in jet kerosene and 20.7 per cent in naphtha.
The report says that the petrochemical product demand too remained above long-term averages. Indian polymer market experienced growth rate of 15 per cent, surpassing China to become the fastest growing polymer market. Polyester demand growth sustained at 5 per cent for the year.
According to the report RIL will continue to commission petroleum retail network which is expanded to over 1000 outlets. The new cracker will be amongst the lowest cost producers of ethylene in the world. About the retail and digital services, the report says that the total number of stores have gone up to 3245 with an area of 12.8 million square feet in FY2015-16 and currently operates 3383 stores.
Report says that RIL and its subsidiaries have tied up long term foreign currency facilities of about 6.3 billion dollar. RIL re priced and re financed debt instrument to reduce interest cost. It concluded the largest financing, longest tenure transaction globally in telecom sector.