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RIL to become cash flow-positive: CLSA

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Mumbai, Jan 3 (IANS) Retaining its “buy” recommendation on the Reliance Industries (RIL) stock, global brokerage firm CLSA on Wednesday said RIL is likely to turn cash flow-positive this fiscal by reaping benefits of its downstream expansion and expects the company to monetise its Jio telecom network.

During 2017-18, the Mukesh Ambani-led RIL was expected to end a four-year run of negative cash flows and report a consolidated free cash flow of nearly $1 billion, according to the Hong Kong-headquartered CLSA.

“This year will see a big cash-flow boost as projects of over $40 billion start to deliver in full swing while capex falls.

“Stabilisation of ROGC (refinery off-gas cracker) and petcoke gasification would boost Ebitda (earning before interest, taxes, depreciation and amortisation),” said the CLSA research report.

On Tuesday, RIL announced the successful commissioning of the world’s largest 1.5 million tonne per annum (MTPA)-capacity ROGC complex at Jamnagar in Gujarat along with downstream plants and utilities.

According to the brokerage, monetisation of the ROGC complex, coupled with the petcoke gasification plant, which is in an advanced stage of commissioning, will boost the Ebitda, or operating income, of the company.

However, RIL “should allow almost a full year of benefit to flow in fiscal 2018-19. Stabilisation of these projects would give a big boost to oil and gas earnings over 12-15 months”, the report said.

Noting that RIL’s telecom network Jio’s monetisation plan entails raising smartphone Arpus, and expanding 4G feature phone subscribers, along with the launch of its broadband and enterprise offering, CLSA said: “We will also start to see cross-selling and other ways to monetise Reliance’s wide customer base, which will be the key long-term value driver.”

Focusing on its telecom venture in 2017, RIL managed to gather nearly 15 crore subscribers on the back of cheap plans and high capacity data network, while CLSA now expects the company to monetise not only Reliance Jio Infocomm customers but also its “industry leading capacities”.

RIL’s telecom venture can monetise its customer base by cross-selling retail products, CLSA said.

“While we also expect a notable decline in capex intensity through 2018, at the same time, successful launch of broadband and enterprise businesses could further add to estimates,” it added.

–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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