Headlines of the Day

Jio continues to transform the broadband market in India

October 23, 2021

Reliance New Energy Solar Ltd (RNESL), a wholly owned subsidiary of Reliance Industries Ltd (RIL), invested USD 50 million to acquire 42.3 million shares of preferred stock in Ambri Inc, an energy storage company based in Massachusetts, USA. Total investment in Ambri Inc. is USD 144 million alongwith strategic investors Paulson & Co. Inc. and Bill Gates, and a few other investors. The investment will help the Company commercialise and grow its long-duration energy storage systems business globally.

RNESL and Denmark-based Stiesdal A/S (Stiesdal) signed a cooperation agreement for technology development, and manufacturing of Stiesdal’s HydroGen Electrolyzers in India. The new technology for HydroGen Electrolyzers has the potential to deliver significant cost reduction compared to currently available technologies thereby paving the way for rapid decarbonisation and commercialisation of affordable Green Hydrogen – a key enabler in achieving India’s green energy transition.

RNESL entered into an agreement with NexWafe GmbH (NexWafe) for acquiring 86,887 series C preferred shares of face value of EUR 1 each of NexWafe at a price of EUR 287.73 per share aggregating EUR 25 million. RNESL will also be issued 36,201 warrants which are exercisable for a consideration of EUR 1 per warrant subject to achievement of agreed milestones. NexWafe’s unique patented technology is expected to cut wafer production costs, making solar photovoltaics the lowest- cost form of renewable energy available.

RNESL to acquire 40% stake in Sterling & Wilson Solar Ltd (SWSL). This partnership with SWSL will provide it access to world-class talent, engineering and project management skills and complement Reliance’s proven strengths in digital technology, engineering, and procurement and project execution all key ingredients required to deliver high quality, cost-efficient and time-bound implementation of giga-scale green energy capacity, in India and across the world.

RNESL announced acquisition of 100% shareholding of REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd., for an Enterprise Value of USD 771 million. The acquisition of REC will help Reliance with a ready global platform and the opportunity to expand and grow in key green energy markets globally, including in the US, Europe, Australia and elsewhere in Asia.

Reliance Retail Ventures Limited (“RRVL”), through its wholly owned subsidiary, 7-India Convenience Retail Limited, has entered into a master franchise agreement with 7-Eleven, Inc. (“SEI”) for the launch of 7-Eleven® convenience stores in India. The first 7-Eleven store opened on October 9 in Andheri East, Mumbai. This will be followed by a rapid rollout in key neighbourhoods and commercial areas, across the Greater Mumbai cluster to start with.

RRVL acquired 96.49% stake in Aaidea Solutions Private Limited (Milkbasket) during the quarter. Milkbasket is India’s first and one of the largest subscriptions based daily micro-delivery service, delivering fresh foods and items of daily needs to its consumers at their doorsteps in a 100% contactless doorstep delivery, same time, every day.

RRVL acquired 52% equity stake in Ritika Pvt Ltd that owns – Ritu Kumar, Label Ritu Kumar, RI Ritu Kumar, aarké, and Ritu Kumar Home and Living. The collaboration with Ritu Kumar will pave the way for bringing the rich artisanal culture of India beyond the existing ideas of couture and fashion.

RRVL has taken sole control of Just Dial Limited in accordance with the SEBI Takeover Regulations with effect from September 1, 2021. RRVL now holds 67% in Just Dial Limited. Just Dial is India’s leading local search engine platform which provides search related services to users across India.

Reliance Brands Limited (RBL) has signed a definitive agreement to invest in founder and creative director, Manish Malhotra’s eponymous brand for a 40% minority stake. The announced strategic partnership is aimed at accelerating the 16-year-old couture house’s growth plans in India and across the globe.

Reliance Retail Limited (RRL), a subsidiary of the Company, acquired the home décor business of Creative Group under the brands ‘Portico’ and ‘Stellar Home’ on a slump sale, going concern basis. The business offers a wide spectrum of bed and bath solutions comprising of fashionable bed sheets, comforters, pillows, cushions and towels.

RSBVL has invested ₹ 20 crore in equity shares of Neolync Solutions Private Limited (“Neolync”). Neolync and its subsidiaries and associate companies are engaged in India based manufacturing of electronic products such as mobile phones, telecom products and computing devices etc. This investment is part of Group’s overall 5G initiatives and commitment to ‘Government of India’s ‘Made in India’ initiatives for fostering indigenous manufacturing especially in next gen 5G technologies.

Reliance Strategic Business Ventures Limited (“RSBVL”), a wholly owned subsidiary of the Company has acquired 2,28,42,654 equity shares of ₹10 each of Strand Life Sciences Private Limited (“Strand”) for a cash consideration of ₹ 393 crore. Strand is a pioneer of genomic testing in India with bioinformatics software and clinical research solutions to healthcare providers including clinicians, hospitals, medical devices manufacturers and pharmaceutical companies. This investment is part of group’s digital health initiatives, to foster affordable access to world class technology and innovation led healthcare ecosystem in India.

Nearly 100% of the eligible employees administered Dose 1 under “Mission Vaccine Suraksha” and 96% of all the eligible employees are fully vaccinated. The balance of the employees will be fully vaccinated within a couple of weeks. Reliance under its Mission Vaccine Suraksha has administered vaccines to employees, their families, partner and employees of investee companies as well as their family members, retired employees and their family members and communities across the country.

Financial results

Standalone financial results for Quarter/Half Year ended 30^th September 2021 (₹ in crore, except per share data)

Particulars	Quarter Ended (Unaudited)			Half Year Ended (Unaudited)		Year ended (Audited)
Particulars	30th Sept’21	30th Jun’21	30th Sept’20	30th Sept’21	30t^h Sept’20	31st Mar’21
INCOME
Value of Services	^–22,048	21,189	20,589	43,237	40.102	82,409
GST Recovered	(3,313)	(3,195)	(3,108)	(6,508)	(6,064)	(12,521)
Revenue From Operations	18,735	17,994	17,481	36,729	34,038	69,888
Other Income	14	14	197	28	473	548
Total Income	18,749	18,008	17,678	36,757	34,511	70,436
EXPENSES
Network Operating Expenses	6,284	5.973	5,426	12,237	10,651	22,058
Access Charges	247	170	1,510	387	2,903	4,631
License Fees/Spectrum Charges	2,194	2,124	1,946	4,318	3,764	7,755
Employee Benefits Expense	355	338	331	693	649	1,337
Finance Costs	1,084	821	1,022	1,905	2,190	3,840
Depreciation and Amortisation Expense	3,188	3,115	2,871	6,303	5,609	11.534
Selling and Distribution Expenses	‘ 264	257	294	521	569	1,172
Other Expenses	462	515	470	967	993	2,022
Total Expenses	14,018	13,313	13,870	27,331	27,328	54,349
Profit Before Tax	4,731	4,695	3,808	9,426	7,183	16,087
Tax Expenses
Current Tax		.	–	–	–	–
Deferred Tax	1,43	1,194	964	2,397	1,819	4,072
Net Profit for the period/year	_.–40,626	3,501	2,844	7,029	5,364	12,015
Other Comprehensive Comprehensive Income
(i) Items that will not be reclassified to profit or loss	^.IC · ? ‘ (5)	¹	(⁰)	(4)	(9)	3
(ii) Income tax relating to items that will not be reclassified to profit or loss	1	(0)	0	1	2	(1)
Total Other Comprehensive Income/(Loss) for the period/year (Net of Tax)	(4)	1	(0)	(3)	(⁷)	2
Total Comprehensive Income for the period/year	3,624	3,502	2,844	7,026	5,357	12,017
Earnings per Equity share of face value of 101- each – Not annualised
Basic (in t)	018	0.78	0.63	1.56	1.19	2.67
Diluted (in Z)	.. ‘011	0.21	0 17	0.41	0.32	0.71
Paid up Equity Share Capital, Equity Shares of 101- each	.44000	45,000	45,000	45,000	45,000	45,000
Other Equity	· 1,44i999	1,41,475	1,31,313	1,44,999	1,31,313	1,37,973
Net Worth	; 1,89,999	1,86,475	1,76,313	1,89,999	1,76,313	1,82,973
Paid-up Debt Capital	17,74.7	14,567	9,181	17,747	9,181	11 196

Particulars	Quarter Ended (Unaudited)			Half Year Ended (Unaudited)		Year ended (Audited)
Particulars	30th Sept’21	30’h Jun’21	30th Sept’20	30th Sept’21	30¹h Sept’20	31⁵¹ Mar’21
Debt Service Coverage Ratio (Refer Note 5)	5.35	6 62	4.73	5.90	4 28	5 19
Interest Service Coverage Ratio (Refer Note 5)	5.36	6 72	4.73	5.95	4.28	5 19
Debt Equity Ratio (Refer Note 5)	0.09	0.08	0.05	0.09	0.05	0 06
Current Ratio (Refer Note 5)	0.61	0 72	1.16	0.61	1 16	0.74
Long term debt to working capital (Refer Note 5)	g		0.03		0.03
Bad debts to Account receivable ratio (Refer Note 5) -Annualised	0.007	0.013	0,010	0.011	0 010	0.023
Current liability ratio (Refer Note 5)	0.42	0.36	0 43	0.42	0.43	0.45
Total debts to total assets (Refer Note 5)	0.06	0.05	0 04	0.06	0.04	0.04
Debtors turnover (Refer Note 5)- Annualised	18.95	29.41	39.45	27.19	43.36	54.61
Inventory turnover”	NA	NA	NA	NA	NA	NA
Operating margin (%) (Refer Note 5)	26.3%	26.0%	22 5%	26.1%	22 2%	23.5%
Net profit margin (%) (Refer Note 5)	16.0%	16.5%	13.8%	16^..3%	13.4%	146%

#Not measurable due to negative working capital *Not Applicable (NA)

Standalone balance sheet as at 3Q1H September 2021 (₹ in crore)

Particulars	AsAt 30th Sept¹21 jUtlaudited)	As at 31’t Mar’21 Audited)
ASSETS
Non- Current Assets
Property, Plant and Equipment	1,20,000	1,15.146
Capital Work-in-Progress	18,322	16,888
Intangible Assets	86,161	56,008
intangible Assets Under Development	27,867	93
Financial Assets
Investments	1,108	1,108
Other Financial Assets	16	10
Other Non-Current Assets	23,541	38,401
Total Non-Current Assets	2,77,015	2,27,654
Current Assets
Financial Assets
Investments	4,033	420
Trade Receivables	4,951	1,410
Cash and Cash Equivalents	143	178
Other Bank Balances	401	411
Other Financial Assets	575	614
Other Current Assets	19,462	19,402
Total Current Assets	29,666	22,435
Total Assets	3,08,580	2,50,089
EQUITY AND LIABILITIES
Equity
Equity Share capital	45,000	45,000
Other Equity	1,44,999	1,37,973
Total Equity	1,89,999	1,82,973
Liabilities
Non-Current Liabilities
Financial Liabilities
Borrowings	586	364
Lease Liabilities	4,419	4,833
Other Financial Liabilities	9,473	10,312
Deferred Payment Liabilities	48,673	18,837
*Deferred* Tax Liabilities (Net)	4.922	2,526
Total Non-Current Liabilities	68,073	36,872
Current Liabilities
Financial Liabilities
Borrowings	17,161	10,832
Trade Payables due to
Micro enterprises and small enterprises	6	6
Other than micro enterprises and small enterprises	2,101	2,233
Lease Liabilities	910	885
Other Financial Liabilities	13,503	7,144
Deferred Payment Liabilities	7,818	–
Other Current Liabilities	6,918	9,072
Provisions	91	72
Total Current Liabilities	48,508	30,244
Total Liabilities	1,18,581	67,116
Total Equity and Liabilities	3,084586	2,50,089