Mumbai: Reliance Industries Ltd (RIL) wants its consumer businesses—Reliance Jio Infocomm Ltd and Reliance Retail Ltd—to contribute on par with its energy and materials businesses over the next decade, RIL chairman and managing director Mukesh Ambani said in his letter to shareholders.
“Our aim is to have the consumer businesses contribute on par with the energy and materials businesses over the next decade, when we celebrate our golden jubilee," Ambani said in the company’s annual report 2017-18.
During the year, RIL’s consumer businesses attained a threshold from which they will start contributing meaningfully to consolidated profits, Ambani said.
“From a mere 2% in FY17, Reliance Jio and Reliance Retail accounted for 13.1% of RIL’s consolidated segment Ebitda (earnings before interest, taxes, depreciation and amortization) in FY18. This was achieved notwithstanding a sharp 33.6% spurt in consolidated Ebitda to ₹ 74,184 crore. Our new-age consumer businesses achieved leadership positions nationally — their growth rates outpacing the best in the world," Ambani said.
Last fiscal, RIL posted a 20.6% jump in net profit to ₹ 36,075 crore ($5.5 billion), becoming the first Indian company to record Ebitda of more than $10 billion.
RIL which launched Reliance Jio, its telecom venture, in late 2016, turned profitable in the very first year of operations. Reliance Jio earned a net profit of ₹ 723 crore on a turnover of ₹ 23,714 crore in its first year of commercial operations.
Reliance Jio had 186.6 million customers at the end of March 2018, and the lowest churn in the industry at 0.25% per month. Each Reliance Jio subscriber on an average consumes 9.7GB data, 716 minutes of voice calls, and 13.8 hours of video per month, said RIL’s annual report.
“The company continues to make progress on delivering enterprise solutions, FTTH (fibre-to-the-home) and IOT (Internet of Things), with beta trials initiated in a few locations. These services are being offered using the existing integrated network and platforms," added Ambani.