Connect with us

Business

Reliance profit rises on BP deal gain; revenue slides 44% on oil hit

Published

on

Reliance Industries Ltd’s <RELI.NS> June-quarter profit jumped 31%, as the Indian conglomerate booked a substantial one-time gain from global oil major BP’s <BP.L> investment in its fuel retail business.

Reliance, led by Asia’s richest man Mukesh Ambani, said on Thursday its consolidated profit rose to 132.33 billion rupees ($1.77 billion) in the three months to June 30, from 101.04 billion rupees a year earlier.

Analysts on average had expected 74.57 billion rupees, according to Refinitiv data. It was not immediately clear if the figures were comparable.

Reliance booked a one-time gain of 49.66 billion rupees ($663 million) during the quarter, reflecting BP’s deal to forge a fuel retailing joint venture with the Mumbai-headquartered firm last year.

However, revenue from operations at India’s largest company by market value slumped nearly 44% to 912.38 billion rupees, hurt by losses in the company’s oil refining business as coronavirus lockdowns slammed global energy demand.

Revenue from the refining unit fell 54%, said Reliance, which operates the world’s biggest oil refining complex.

Still, its Jio telecom unit – India’s biggest by subscribers – continued to remain a bright spot as revenue from the business jumped 33.7% during the quarter.

source

Business

STF arrests two businessmen with illegal arms

Published

on

Two businessmen were arrested from Strand Road on Monday night by a team of officers of the Special Task Force (STF) of Kolkata police in connection with possession of unlicensed firearms.

Acting on a specific tip-off, officers of the STF laid a decoy while conducting raids and arrested two businessmen –Sujato Goswami and Md Shahid. They were later interrogated thoroughly and eight one-shoter guns and a bike was seized from them.

Lalbazar sources said the duo were both residents of Serampore Hooghly.

An STF officer said investigation was on to elicit information from them concerning whom they were going to deliver the arms to and from where the consignments were received. Both were charged with sections under Arms Act.

Meanwhile, in another raid based on a tip-off, a team of officers had conducted raids at a residence of another businessman Md Yasin at Elliot Road at Park Street and confiscated cash worth Rs 1.50cr from his residence.

Besides, police sources said gold jewellery , two laptops and a mobile were seized from the residence.The owner of the house was however, not present at the time the raid was being conducted. Sources said that the family member of the busineesman, when confronted by the officers could not show any valid documents nor could they shed light on the source of the “unaccounted money”.

Police have launched a probe and are on the lookout for the businessman.

source

Continue Reading

Business

Reliance Retail receives Rs 5,550 crore from KKR for 1.28% stake sale

Published

on

Reliance Industries on Thursday announced that it has received an investment worth Rs 5,550 crore from global investment firm KKR for 1.28 per cent stake in its Reliance Retail Ventures Limited.

“We hereby inform that Reliance Retail Ventures Limited, a subsidiary of the Company, today received the subscription amount of Rs 5,550 Crore from Alyssum Asia Holdings II Pte. Ltd. (KKR) and allotted 81,348,479 equity shares to KKR,” Reliance Industries said in a regulatory filing on Thursday.

Earlier, on September 23, Reliance Industries had announced that KKR will make the investment in its subsidiary Reliance Retail Ventures Ltd (RRVL) to buy 1.28 per cent equity stake.

The investment valued Reliance Retail, which runs grocery stores and fashion chains, at a pre-money equity value of Rs 4.21 lakh crore.

This was the second investment by KKR in Reliance Industries’ units. It had previously picked up a 2.32 per cent stake in the digital arm, Jio Platforms, for Rs 11,367 crore.

After monetising Jio Platforms — which houses the firm’s telecom arm and digital ventures, billionaire Mukesh Ambani is roping in investors in the retail business.

All the 13 investors, who had poured in a combined Rs 1.52 lakh crore in Jio Platforms, have been offered a chance to explore investing in the retail unit. Besides KKR, the other investors in Jio Platforms include Silver Lake, Facebook, Google, private equity groups Vista and General Atlantic and Abu Dhabi’s sovereign wealth fund Mubadala.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest-growing and most profitable retail business spanning supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets, and online grocery store JioMart. It operates almost 12,000 stores in nearly 7,000 towns.

source

Continue Reading

Business

Vodafone v/s India: Indian govt may have to pay Rs 85 crore if it decides not to appeal

Published

on

The Indian government may have to pay a total of Rs 85 crore, if it decides not to appeal against Friday’s ruling of the Permanent Court of Arbitration (PCA) in the Rs 22,100 crore retrospective tax dispute with Vodafone Group. The arbitration tribunal on Friday delivered its verdict in favour of Vodafone against Indian government’s retrospective tax demand of capital gains tax.

As per an IANS report on Saturday, Finance Ministry sources said that the court has asked the Indian government to pay only 4.3 million pounds, or about Rs 40 crore, which is 60 per cent of the tribunal’s administrative cost while the rest 40 per cent would be borne by Vodafone. Also, the government may have to refund the tax collected, which is about Rs 45 crore, only if it does not go for appeal against the award.

Therefore, the total outgo would be around Rs 85 crore only.

The Finance Ministry, in a statement, said that the government will make a decision on the further course of action, including legal remedies, among other options including legal remedies before appropriate fora.

The statement issued by the ministry read as: “The Finance Ministry has just been informed that the award in the arbitration case invoked by Vodafone International Holding BV against Government of India has been passed. The Government will be studying the award and all its aspects carefully in consultation with our counsel”.

Vodafone had moved the International Court of Justice (ICJ) in 2016 due to a lack of consensus between the parties’ arbitrators in finalising a judge for a tax dispute. Following this, a tribunal was constituted in June 2016 after Vodafone challenged India’s use of a 2012 legislation that gave it powers to retrospectively tax deals like Vodafone’s $11 billion acquisition of 67 per cent stake in Hutchison Whampoa in 2007.

The retrospective tax law had been enacted after a Supreme Court judgement went in Vodafone’s favour.

Vodafone had challenged the tax department’s demand of Rs 7,990 crore as capital gains tax (Rs 22,100 crore after including interest and penalty) under the Netherlands-India Bilateral Investment Treaty (BIT). In 2007, the Income Tax Department had slapped a demand notice seeking capital gains tax.

source

Continue Reading

Newsletters

Enter your email address to get latest updates

Advertisement

Trending

Copyright © 2018 - 2019 Delhi Wire.