Reliance 47th AGM: Mukesh Ambani Announces 1:1 Bonus Shares, Focus on Job Creation

Reliance Industries Limited (RIL) is holding its 47th Annual General Meeting today, Thursday (August 29), at 2 PM. The company’s chairman, Mukesh Ambani, announced the Jio AI Cloud Welcome Offer. He stated that Jio users will get up to 100 GB of free cloud storage.

You can store photos, videos, documents, and other digital content in this storage. This offer will be launched during Diwali. Additionally, Ambani mentioned that Reliance is considering issuing a 1:1 bonus issue on September 5. We are building wealth and providing high-quality products and services.

Shareholders are the backbone of the company. We are not in the business of short-term profits. Mukesh Ambani stated that in eight years, Jio has become the world’s largest mobile data company. Every Jio user consumes 30 GB of data per month. The cost is one-fourth of the global average. Ambani also congratulated Prime Minister Narendra Modi on his third consecutive victory in the 2024 Lok Sabha elections.

Reliance adopts a new incentive-based employment system

Mukesh Ambani said that Reliance has adopted a new incentive-based employment system. The company provided 1.7 million jobs last year. He also informed that the company spent more than ₹3,643 crore on research and development in the financial year ending March 2024.

Over the last four years, more than ₹11,000 crore has been spent on this. RIL employs over 1,000 scientists. Ambani mentioned that all our businesses are key drivers of the Indian economy. We are not in the business of short-term profits and wealth accumulation.

Jio as a true deep-tech innovator

Mukesh Ambani stated that Jio is the fastest-growing digital company. Its revenue has crossed ₹1 lakh crore. It is a true deep-tech innovator. It has transformed the country from a 5G dark spot to a 5G bright spot. Last year, Jio completed the rollout of 5G across the country.

Shares increased by almost 2% during the AGM

After the AGM, Reliance shares witnessed a surge. The shares are trading at ₹3,052, up by 1.87%. Reliance shares have delivered a 23% return over a year. However, in the last six months, the shares have risen by only 2.50%. Over a month, the shares have dropped by approximately 1.5%.

Profit of ₹15,138 crore in Q1 FY 2024-25

A month ago, Reliance Industries announced the results for the April-June quarter. The company reported a profit of ₹15,138 crore in this quarter. On an annual basis, the profit decreased by 5.45%. In the same quarter a year ago, the profit was ₹16,011 crore.

During the same period, the company’s revenue was ₹2,36,217 crore. In the same quarter a year ago, the company had a revenue of ₹2,10,831 crore, marking a 12.04% increase on an annual basis.

1. Reliance Jio: The world’s largest telecom operator in terms of data usage

India’s No. 1 telecom service provider, Reliance Jio, has become the world’s largest telecom operator in terms of data usage. In the June quarter, nearly 45 exabytes of data were used on Jio’s network, which is 33% higher than the previous year.

The Average Revenue Per User (ARPU) is used to measure the performance of telecom companies. Jio’s ARPU remained stable at ₹181.7 for the third consecutive quarter. However, the 13-25% tariff increase implemented last month is expected to raise the ARPU in the coming days.

Reliance Jio Limited reported a net profit of ₹5,445 crore in Q1 FY 2024-25. This represents a 12% annual increase. In the same quarter a year ago (Q1FY-2024), the company had a profit of ₹4,863 crore.

In the April-June quarter, the company’s revenue increased by 10.33% year-on-year to ₹26,478 crore. In the same quarter a year ago, it had recorded a revenue of ₹24,042 crore. Meanwhile, net profit and revenue increased by 2% compared to the previous quarter (Q4FY24).

2. Reliance Retail: 331 new stores opened in Q1, total stores reach 18,918

Reliance Retail recorded 296 million footfalls in the quarter, compared to 249 million in the same period last year, marking an 18.9% increase in footfalls. Reliance Retail opened 331 new stores, bringing the total number of stores to 18,918.

The company continued to focus on enhancing digital commerce and new commerce, which contributed 18% to the total revenue. The demand for ACs and refrigerators increased during the summer season. The demand for TVs also rose due to the T-20 World Cup and IPL.

Reliance Retail’s revenue increased by 8.10% year-on-year. In the April-June quarter, the company’s revenue from operations was ₹75,630 crore. During the same period last year, the company had recorded a revenue of ₹69,962 crore.

In the quarter ended June 30, 2024, the company’s profit after tax increased by 4.6% year-on-year. Reliance Retail reported a profit after tax of ₹2,549 crore in the June quarter. In the same quarter a year ago, it was ₹2,436 crore.

Reliance: The largest private-sector company in India

Reliance is the largest private-sector company in India. It is currently operating in hydrocarbons exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewable energy, digital services, and retail sectors.