Mukesh Ambani Is In Trouble, As He lost $ 5 billion As Oil Sinks In Reliance Shares
Reliance's oil refining sector has reduced the demand for transportation fuel, due to coronavirus people stay indoors. The group, led by 63-year-old Ambani, is making changes, trying to convert an oil and petrochemical company into a technology and digital services company.
By blogwriternisha
Asia's richest man, Mukesh Ambani lost more than $ 5 billion from his total wealth, and shares of Reliance Industries Ltd. fell. Lowest price in more than three months after quarterly profit decline.
India's most valuable company stock plunged by 6.8% in Mumbai at 12:21 pm on Monday, slipping to the lowest since May 12 and reaching its lowest number since July 20. The BSE Sensex S&P benchmark did not fall just as much as 0.7%. According to the Bloomberg Billionaires Index, Ambani's wealth also declined by nearly $ 73 billion since March.
The refinery-to-retail group reported a 15% drop in quarterly profit to 95.7 billion rupees ($ 1.3 billion) late Friday, as the coronavirus epidemic affected fuel demand. Revenue fell by 24% to Rs 1.16 trillion.
Transport fuel demand at Reliance's refining unit has dropped dramatically, and the Covid-19 has forced people to stay home. The group is in the midst of a transformation under the leadership of 63-year-old Ambani as it seeks to transform the oil and petrochemical giant into a digital technology and services company by strengthening its telecommunications and e-commerce businesses.
The earnings slip supports Ambani's strategy and emphasizes the need to reduce Reliance's reliance on the energy sector and boost businesses to take advantage of India's billion-plus consumers.
Reliance's gross refining margin - or profit from refining a barrel of crude oil into fuel - fell to $ 5.7 per barrel in the most recent quarter, compared to $ 9.4 a year earlier, the company said. Meanwhile, profit by its telecom business has nearly tripled under Reliance Jio Infocomm Limited in the same period.
Dependency shares rose nearly 29% this year, while the Sensex slipped 4%, as investors suggested Ambani's fundraising saw Reliance drop more than $ 25 billion by selling bets in its digital and retail units. According to the Bloomberg Billionaires Index, Ambani spewed the largest amount of money on Friday in 2020, raising $ 19.1 billion.
Arun Kejriwal, founder of investment advisory company KRIS in Mumbai, said, "This stock is correcting some of its sharp gains recorded in the last few months." "Now the market is booking its profits."
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