No big announcements at RIL AGM disappoint market
Plans to create end-to-end solutions that address complete digital value chain.
Reliance Industries chairman Mukesh Ambani on Friday said that the Rs 2,50,000 crore FY11 revenues oil-to-retail giant sees a new wave of growth through a digital and consumer ecosystem in the beginning of the second decade of this century.
However,Dalal Street was disappointed after the companys annual general meeting here as there was no specific announcement by the RIL chairman about steps to improve KG-D6 production,the firms promised entry into power and financial services sectors and any signals on acquisitions.
Addressing the RIL AGM here,Ambani whose companys scrip had been underperforming,losing about 8 per cent in the two months since April while the Sensex has fallen just over 4 per cent skirted any big ticket announcements on expansions or acquisitions,but maintained the company,which last June acquired 95 per cent stake in Infotel Broadband Services for Rs 4,800 crore,plans to create end-to-end solutions that address the complete digital value chain,including rich content,applications and services. In retail,where it has the highest geographical footprint with over 1,000 stores across 86 cities,it will soon launch a cash-and-carry format along with an aggressive investment.
Regarding the KG-D6 basin,where output has fallen way below targets,Ambani said,After the government approvals for the BP-Reliance partnership,the KG-D6 reservoirs will be jointly assessed to address the technical issues in ramping up production. Oil and gas volumes at KG-D6 have dropped from their peak levels in March 2010 quarter of 25,000 barrels per day and 60 mmscmd,respectively,to 17,000 bpd and 49 mmscmd.
Significant efforts are underway to comprehend the character and the behaviour of these complex reservoirs,first-of-its-kind developed in Indian deep waters,Ambani told shareholders.
These include extensive geoscientific and engineering work to be undertaken with our partners to sustain and augment the production, he added.
RILs shares,which rose in morning trade on Friday on expectations of some significant announcements,fell 1.65 per cent on the BSE to close at Rs 936.15.
Stating that RIL,which at present has a cash balance of Rs 42,392 crore will be completely debt free by the end of the financial year,Ambani said that India is on the verge of a digital revolution that will connect,enable and enhance lives. Regarding foray into the banking sector,Ambani said,We are not contemplating seeking a banking licence in the present scheme of things.
SP Tulsian,market analyst and investment advisor,said he was disappointed that there was no specific mention by the Ambani on steps to improve KG-D6 production,or regarding the firms promised entry into power.
Bullish on retail
In retail,RIL will launch a cash-and-carry format along with an aggressive investment
RIL chief Mukesh Ambani skips announcements on steps to improve KG-D6 production
Not contemplating seeking a banking licence in the present,says Ambani
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