What to expect from Reliance Industries’ AGM today?

Mukesh Ambani

Reliance Industries Limited (RIL) scheduled its 39th Annual General Meeting on June 06, 2013 for FY2012-13 and we expect some clues regarding its future course of action.

We assert that in the upcoming AGM, management may throw some light on its future business policy across all segments, which we reckon will instill confidence amongst the share owners.

There is also expectation on clarification of the strategy Smart Transformation at Reliance (STAR). STAR is the new business initiative undertaken by the company to make RIL a future ready company in all aspects.

We also believe that the management of the company will walk us through the business performance of the company for the FY2012-13 and the outlook going forward. In this regard, the company may discuss its capital expenditure plans across all sectors.

In the last AGM, the company proposed a capex bifurcated into different quantum across sectors (E&P-$11bn, Refining $4bn, Petchem $8bn, Infocomm $3bn, Retail $1bn) over a period of 3-4 years.

The company is likely to explain how much and where the capex has been utilized.

Moreover the company proposed a dividend of Rs 9.00 per equity share, which is subject to approval and may probably may get materialized. The company may discuss plans on utilizations of its huge cash reserves.

There can be an announcement related to hydrocarbons (KG gas basin) and its future goal plans, along with preposition on containing falling output from the KG basin. Moreover, we expect company to discuss its shale gas exploration and further development of its tie-ups with its U.S. counterparts.

We expect the company to make aware its investors about their developments as well as future proposition of retail & infocomm business segment. In particular, we believe the infocomm segment is on the verge of rollout in the current financial year.

Furthermore, the company may enlighten its shareholders regarding communication with the government on the subject of new gas pricing policy and the development of existing oil & gas blocks.

Source : The Economic Times

http://economictimes.indiatimes.com/markets/analysis/what-to-expect-from-reliance-industries-39th-agm-on-thursday/articleshow/20440831.cms