RIL’s net debt might not rise in 2020-21 despite coronavirus, says report
Billionaire Mukesh Ambani-led Reliance Industries Ltd’s net debt will fall even if energy and retail demand struggles for six months and the planned asset sales are delayed, said a research report by Morgan Stanley. RIL can re-prioritise investment, potentially slowing capex by up to a third.
Beyond COVID-19, RIL emerges stronger as competitors face high debt challenges and slow investments, PTI reported citing a Morgan Stanley research report. With the outbreak of coronavirus impacting economies globally, RIL faces multiple challenges — oil prices have declined along with a fall in global oil product demand as a result of the lockdown across India and multiple geographies, potential slowdown in fashion/electronics demand for its retail segment, slower monetisation of telecom investments, and still relatively high debt post the investment cycle.
