Mumbai: As RIL stock fell 5 per cent intraday on Monday, Mukesh Ambani, Chairman of India’s largest listed company, will see a notional loss of wealth close to $5.2 billion, as reported by ET.
Currently, Ambani’s place in the Bloomberg Billionaires’ Index is at No. 11, and today’s loss will likely push him to 12th place. According to the index, Ambani’s wealth was at $79.2 billion prior to today’s stock price crash.
The chairman and managing director of the company currently owns a 50.54 per cent stake in RIL in his own capacity and through family-owned entities, according to ET.
Analysts have expressed concerns over the weaker than expected Q3 results posted by the company.
Brokerage firm Kotak Institutional Equities told ET that “RIL’s operating performance across segments was weaker than our expectations in Q3. Debt reduction was lower as a significant portion of inflows from capital raise and cash profits was once again utilized in capex, working capital and repayment of creditors.”
Brokerage firm Edelweiss Securities has raised concerns over falling transparency in the company’s earnings, and highlighted that the contribution of the consumer-focused business was much lower than what optically appeared because of dilution of stake.
The company’s energy business was the worst affected by the Covid-19 pandemic given that the demand for transportation fuel sank due to ban on international travel and most people choosing to stay at home.
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said, “At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our Company’s impressive performance in the third quarter of FY21. We have delivered strong operational results during the quarter with a robust revival in O2C and Retail segments, and steady growth in our Digital Services business. I am proud that Reliance has employed 50,000 more people since March 2020.”
The weak topline performance of the company was attributable to the continued struggles of the refining business and retail business of the company due to the Covid-19 pandemic.
However, the telecom business of RIL has continued to show strength through the pandemic months as individuals locked up in their houses binged on data on their mobiles and laptops.