Reliance Industries' shares down over 1% on profit-booking

Shares of Reliance Industries fell by over 1% on profit-taking amid an overall weak broader market even as the company reported highest quarterly profit in seven-and-a-half years on strong refining and petrochemical margins. 

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The stock opened the day on a positive note but later fell by 1.24% to Rs 1,012.25 on BSE. 

At the NSE, shares of the company were down 1.31% to Rs 1,011.55. 

On Friday, RIL had reported a standalone net profit of Rs 6,318 crore or Rs 19.5 per share in April-June quarter, which  was 11.8 per cent higher than Rs 5,649 crore or Rs 17.5 a share in the same period a year ago.The first quarter profit in the current financial year 2015-16 was highest since earning in October-December 2007. 

Revenue fell 26 per cent to Rs 77,130 crore, hurt by a sharp fall in prices of crude oil and petroleum products, the company had said in a statement. 

Consolidated net profit rose 4.4% to Rs 6,222 crore in April-June quarter of the current fiscal as against Rs 5,957 crore a year ago, the statement said. 

In the broader market, the BSE Sensex was quoting 326.60 points down at 27,760.89. 

Source - DNA

Reliance Infrastructure to seek subsidy to keep metro fares low

MUMBAI: Reliance Infrastructure-led Mumbai Metro One on Monday said it will seek metro operational subsidy from the state government to keep the fares lower, even as the fare fixation committee has recommended its revision in the range of Rs 10 to Rs 110 for the over 11km-long corridor. 

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Meanwhile, Mumbai Metro One (MMOPL), which is operating the network, has decided to continue the current fare range of Rs 10 to Rs 40 till October 31, after which it will review the fare structure and gradually increase the ticket costs depending on the government response. 

"The recommendations by the fare fixation committee (FFC) has taken into consideration the cost to operate the metro line, business viability and the value propositions that metro brings in to its commuters. 

"While at the business level we continue to make significant cash losses, considering the interest of commuters, it is decided to maintain the existing fare for the time being while we engage with the government and other authorities to progress on leads given by the FFC," MMOPL chief executive Abhay Mishra said. 

The Reliance Infrastructure in a statement also said that experts appointed by the FFC has also suggested that MMOPL should be granted metro operational subsidy by the government to keep the fare affordable and should fully monetise the potential of real estate available at metro properties, to ensure business viability. 

The FFC on July 8 submitted its report recommending the revised fare after analysing all aspects, including the cost to operate the line and alternate modes of transport, sustainability and affordability. 

It had recommended to retain the minimum fare at Rs 10 and increase maximum fare to Rs 110. 

The committee, while fixing the fares had said, "MMOPL is not strictly comparable with other metros in the country, which have the distinguished advantage of concessional interest and lower power tariff, whereas Mumbai Metro is paying commercial rate of interest and a very high electricity cost." 

"It is a common practise across the globe to provide operational subsidy to transportation services which leads to business viability and fare affordability for a larger section of commuters," Mishra added.

Source - TOI 

Reliance Brands to launch Muji in India

MUMBAI: Reliance Brands, a unit of Mukesh Ambani-led Reliance Industries, has struck a joint venture with minimalist Japanese retailer Muji, which sells a wide array of products ranging from stationary and clothing to furniture and food, to open its stores in India. The first few standalone Muji stores will come up in Delhi and Mumbai by middle of next year, aReliance Brands spokesperson told TOI, at a time when another Japanese brand Uniqlo chalks out its India entry. Known for its eco-friendly products with a no-frills, no-labels ethos, the $2.2-billion retailer - present globally across more than 700 stores - is dubbed as Japan's IKEA. 

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"International expansion is of utmost priority for us and India is our next big Asian market with immense growth potential. We believe there is a significant pool of cosmopolitan consumers who have their own sense of style and who place product above brand logos," said Satoru Matsuzaki, president and representative director of Ryohin Keikaku, which operates the Muji brand of stores. The 35-year-old brand targeted at urban, middle-class consumers does not put any brand labels on its products. 

"Both furniture and home goods are categorized as household products by Muji, which together contribute more than half of the retailer's revenues. Health & beauty is also a key category for us," said Matsuzaki in an emailed interview with TOI. "Our signature cosmetics and skin care items are made in Japan while our stationary sales globally is outstanding," he said. In India, Muji will offer all its products through large-format standalone stores at sizes ranging from 6,000-10,000 sq ft. However, domestic regulations do not permit Reliance to open Muji cafes locally. 

Darshan Mehta, president & CEO, Reliance Brands, said, "Muji is simplicity - but simplicity achieved through a complexity of thought and design. Their products are extremely high-quality and have been designed to cater to the lifestyle of urban dwellers. We have great confidence that the Indian consumer will embrace the brand." Reliance Brands runs 100 standalone stores of 18 international brands in India, including the likes of Kenneth Cole, Steve Madden, Diesel, Brooks Brothers, among others. The organized Indian retail market has been a tough one to crack for most international brands because of non-availability of quality real estate as well as regulatory challenges, limiting foreign investments in front-end retail.

Source - TOI