Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NSE India Stock Exchange  >  Reliance Industries Ltd    RELIANCE   INE002A01018

RELIANCE INDUSTRIES LTD

(RELIANCE)
  Report
Delayed Quote. Delayed NSE India Stock Exchange - 11/24 04:50:18 am
1966.7 INR   +0.82%
03:31aRELIANCE INDUSTRIES : seeks LNG cargo for December delivery - sources
RE
12:45aNifty cracks 13,000 mark on vaccine hopes, banks lead gains
RE
11/23Nifty, Sensex rise on vaccine optimism; Reliance gains
RE
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Telcos get 10 years to pay India dues, pain not over for Vodafone

09/01/2020 | 05:23am EST

* Court asks telcos to pay 10% dues by March 31, 2021

* Vodafone Idea's longer-term problems not over

* Vodafone Idea shares fall as much as 25% on ruling (Recasts, adds buy-side comment)

NEW DELHI, Sept 1 (Reuters) - Heavily indebted Indian telecoms firm Vodafone Idea won some reprieve on Tuesday as the country's top court gave mobile carriers 10 years to settle government dues, but the company's longer-term problems are not over.

Vodafone Idea and rival Bharti Airtel, two of India's three major carriers, had asked India's Supreme Court for 15 years to settle their fees.

Tuesday's Supreme Court ruling means companies will have until 2031 to clear their dues, after they missed an original January deadline ordering them to pay roughly $13 billion.

The court also asked telecoms firms to pay 10% of the charges owed by March 31, 2021.

The dues refer to the amount that telecom providers must pay to the Department of Telecommunications (DoT) for using airwaves and in license fees.

Vodafone Idea - a joint venture between Britain's Vodafone Group Plc and India's Idea Cellular - said in its quarterly earnings statement on Aug. 6 that if it is unable to pay its dues, that could jeopardise its ability to remain in business.

Tuesday's ruling gives it respite but the loss-making company's financial pressures persist, according to telecoms industry executives.

Vodafone Idea's shares plunged as much as 25% after the ruling before closing down 13.2%.

"The window for Vodafone to raise funds, have better models and give paybacks commitment is small which is adding pressure on the stock," said Abhimanyu Sofat, head of research at brokerage IIFL Securities.

Vodafone Idea has paid the government 78.54 billion rupees in telecoms dues, according to regulatory filings, but still owes roughly 500 billion to the government.

It reported its eighth straight quarterly loss in April-June with its gross debt, excluding lease liabilities, at 1.19 trillion rupees ($16.31 billion).

Cut throat competition from Reliance Industries' telecoms venture Jio Infocomm - which launched with free voice and cut-price data in 2016 - hit Vodafone, which also lost subscribers, in an ensuing price war.

Vodafone's customer base fell by 4.7 million to 309.9 million users in May, according to data from India's telecoms regulator.

Separately, the company also owes hundreds of millions of dollars in payments for airwaves and interest on debt.

"They should have been given at least 15 years," said a fund manager at a mutual fund which invests in Vodafone and Bharti Airtel said.

Vodafone Idea did not immediately respond to a request for comment.

Bharti Airtel previously said it has paid all its dues which it estimates at 180 billion rupees, but government calculations suggest it still needs to pay another 259.76 billion rupees. Its shares closed 6.5% higher.

"For Bharti Airtel, the (view) that Vodafone Idea is being marginalized is beneficial for them," said Vivekanand Subbaraman of research firm Ambit Capital.

India's newest carrier Jio, controlled by India's richest man Mukesh Ambani, has already cleared its smaller backlog of charges.

India's telecom providers have to pay the DoT nearly 3-5% of their adjusted gross revenue (AGR) in usage charges for airwaves and 8% of AGR as licence fees. They have long disputed the definition of AGR but last year the Supreme Court upheld the DoT's view that the AGR should include all revenue. (Reporting by Suchitra Mohanty, Sankalp Phartiyal and Abhirup Roy; Additional reporting by Chris Thomas and Philip George; Editing by Ana Nicolaci da Costa and Susan Fenton)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BHARTI AIRTEL LIMITED -1.33% 477.05 End-of-day quote.4.66%
IIFL SECURITIES LIMITED -5.13% 43.45 End-of-day quote.6.76%
RELIANCE INDUSTRIES LTD 0.76% 1966.7 Delayed Quote.30.07%
VODAFONE GROUP PLC 1.74% 124.14 Delayed Quote.-16.88%
VODAFONE IDEA LIMITED -1.44% 10.3 Delayed Quote.69.11%
All news about RELIANCE INDUSTRIES LTD
03:31aRELIANCE INDUSTRIES : seeks LNG cargo for December delivery - sources
RE
12:45aNifty cracks 13,000 mark on vaccine hopes, banks lead gains
RE
11/23Nifty, Sensex rise on vaccine optimism; Reliance gains
RE
11/21Modi says India set to double oil refining capacity in five years, earlier th..
RE
11/20RBI committee recommends reshaping domestic banking industry
RE
11/20CCI clears Reliance-Future's $3.4 billion deal despite Amazon's objections
RE
11/20Nifty, Sensex end higher on boost from financials
RE
11/19Reliance Industries Retail Unit Completes $6.38 Billion in Fund Raising
DJ
11/19MUKESH AMBANI : Reliance says retail venture completes fundraising, rakes in $6...
RE
11/19RELIANCE INDUSTRIES : Retail Ventures Limited completes fund raise of ₹ 47..
PU
More news
Financials
Sales 2021 5 246 B 70 919 M 70 919 M
Net income 2021 442 B 5 976 M 5 976 M
Net Debt 2021 956 B 12 921 M 12 921 M
P/E ratio 2021 29,4x
Yield 2021 0,34%
Capitalization 12 385 B 167 B 167 B
EV / Sales 2021 2,54x
EV / Sales 2022 1,86x
Nbr of Employees 195 618
Free-Float 50,4%
Chart RELIANCE INDUSTRIES LTD
Duration : Period :
Reliance Industries Ltd Technical Analysis Chart | RELIANCE | INE002A01018 | MarketScreener
Technical analysis trends RELIANCE INDUSTRIES LTD
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 2 196,44 INR
Last Close Price 1 950,70 INR
Spread / Highest target 28,2%
Spread / Average Target 12,6%
Spread / Lowest Target -32,3%
EPS Revisions
Managers
NameTitle
Mukesh Dhirubhai Ambani Chairman & Managing Director
Srikanth Venkatachari Joint Chief Financial Officer
Alok Agarwal Joint Chief Financial Officer
Nikhil Rasiklal Meswani Executive Director
Hital Rasiklal Meswani Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
RELIANCE INDUSTRIES LTD30.07%166 790
EXXON MOBIL CORPORATION-43.59%156 191
BP PLC-46.26%65 407
CHINA PETROLEUM & CHEMICAL CORPORATION-24.52%59 543
NESTE OYJ76.85%49 957
PTT-7.95%36 099