The chairman of oil & gas major, Mukesh Ambani, started the 41st Annual General Meeting of Reliance Industries saying that this is the first AGM as RIL begins its Golden Decade. Most analysts�� feel the same way about the stock price as well, which rose a little over 7 percent in 2018.
As the Golden Decade rolls on, our consumer businesses will contribute nearly as much to the overall earnings of the company as our energy and petrochemical businesses, Mukesh Ambani said addressing the shareholders.
Reliance continues to be India's largest exporter accounting for 8.9 percent of India's total merchandise exports with a value of Rs 176,117 crore with access to markets in 113 countries.
The speech has something for everyone. The big takeaway is that most of the business of RIL are contributing to its growth story and plans to foray into e-commerce business in agriculture, education, and healthcare.
related news Here's everything you want to know about JioGigafiber RIL AGM: Mukesh Ambani says revenues to more than double by 2025The big announcement of advanced fiber-based broadband connectivity service called JioGigaFibre sent shivers in the telecom as well as Cable TV space. Mukesh Ambani says the new fibre service will redefine 24/7 emergency help for all homes across India.
The stock has risen a little over 7 percent in 2018 but analysts�� feel that there is plenty of growth left for the long-term investors. Although it may remain in a range in the next 12 months or so.
"RIL's profits are up by 20.6 percent to Rs 36,075.crore in FY18. Reliance has reached an inflection point," Ambani said addressing shareholders at the 41st AGM. He added that Reliance Jio and Retail's share in overall EBITDA has gone up from 2 percent earlier to 13 percent now.
Jio has doubled its customer base to 215 million users within 22 months since the official launch of the network which is a record that no technology company has been able to achieve anywhere in the world.
��RIL provided a detailed presentation on Jio citing its vision for Jio over the next few years. Significant growth in subscriber base to 215mn and robust jump in data and voice usage are commendable,�� Sudeep Anand, Head-Institutional Equity Research at IDBI Capital told Moneycontrol.
��The company��s strategy to go aggressive on FTH (Fibre-to-home) business along with connecting enterprise business are likely to drive growth for the company. The company is targeting 100 mn Reliance Jio phone users, 5mn FTH subscribers and 50mn households with broadband and other services,�� he said.
Also, Reliance disclosed its plan for e-commerce business in 3 main platforms 1) agriculture, 2) education and 3) healthcare. Though it provides a positive outlook but difficult to pen any numbers as of now, but Anand is quite optimistic about the future of Jio and RIL as a whole. IDBI Capital maintains a buy rating with a target price of Rs1,150.
In the last one year, Jio has achieved unprecedented growth starting with an already existing large base. The data usage has grown from 125 crore GBs per month to more than 240 crore GBs per month.
Jio is the world's largest mobile data network last year and the gap from the others has only widened in the last 12 months. The voice usage on the network has grown from 250 crore minutes per day to more than 530 crore minutes per day.
RIL plans to foray into three new platforms vis. Agriculture, education, as well as healthcare. Mukesh Ambani further added that as India starts on its high growth journey to double the size of its economy by 2025, I assure you that the size of Reliance will more than double in the same period.
��Launch of Jio was just a trailer, the array of services which Reliance now wants to deliver/cross-sell to the last mile consumers are huge and varied across many sectors which hitherto are serviced by brick and motor establishments,�� says Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote who has a target of Rs 1050-900 on RIL for next 12 months.
��These will now be catered through Jio��s digital platform. The philosophy of forwarding integration in data is the next mission of Jio. This will truly bring in digital revolution if they are able to implement and execute the same,�� he said.
Reliance started with backward integration in Refinery by later venturing into hydro carbon sector, but in digital it is the reverse.
Hydrocarbon Business:
RIL has successfully commissioned and stabilized the world's largest Paraxylene complex. Reliance is the second largest PX producer in the world and Jamnagar has the distinction of being the largest manufacturing facility of PX in the world with 4.2 million MT of capacity.
Speaking at the AGM, Mukesh Ambani said that we commissioned the largest off-Gas cracker complex in the world. Using our Refinery off-gasses as feedstock, this cracker is the most cost competitive ethylene cracker, globally.
��This positions us uniquely, as one of the most efficient producers of Polymers in the world. I am proud to report that both these projects have been completed in a record time frame, at world-beating capital productivity and commissioned flawlessly,�� he said. "Both the Paraxylene and Cracker complexes are already running substantially higher than their design capacity."
��The core downstream projects are largely on track with Paraxylene and RoGC already running above the design capacity and petcoke gasification project now fully stabilized. We have Buy rating on Reliance Industries,�� Abhijeet Bora, analyst, Sharekhan by BNP Paribas told Moneycontrol.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. First Published on Jul 5, 2018 04:40 pm
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