Reliance Industries reported its highest quarterly net profit in eight years on 22nd April 2016, Friday. RIL said the firm will increase the capital expenditure by Rs 30,000 crore this financial year to complete ongoing refining and petro chemical projects as well as for the telecom business.
RIL Group Deputy Chief Financial Officer V Srikanth said that, “Our capex in the reporting fiscal year stood at Rs 1.20 trillion and this will go up to Rs 1.5 trillion in the ongoing fiscal year. The money will be spent to complete the ongoing expansion projects at Jamnagar and the rollout of the telecom network.”
He told that Rs 50,000-60,000 crore will be needed to complete the ongoing multi-billion dollar expansion at the Jamnagar refinery complex and over Rs 60,000 crore in Reliance Jio. The remaining money will be spent on other verticals, including around Rs 3,500 crore in the retail arm.
RIL’s cash balance stood at Rs 86,033 crore in the March quarter that is down from Rs 91,736 crore in the December quarter, while its debt rose to Rs 1,81,079 crore from Rs 1,78,07 crore in the October-December period said Srikanth.
Srikanth said the company has booked a small consignment of crude and long-term contracts could be thought of only after payment issue has been settled. Anshuman Thakur is a head of Strategy and Planning at Reliance Jio. He said that, “The over Rs 60,000 crore capex for the telecom vertical, some of the money will be spent on widening the network coverage to 90 per cent as planned.”
He said that some of the money is yet to be finalised, will have to be paid to RCom as well. Reliance operates the world’s largest single location refinery located at Jamnagar, Gujarat. Reliance operates with 30 million tonnes capacity, reported a consolidated net of Rs 7,398 crore or Rs 25.1 a share, up 15.9 per cent.
Srikanth said the company will be able to sustain margins at above $10 — one of the highest among global refiners — in the current financial year.
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