Mukesh Ambani loses nearly $7 billion after RIL drops 8.6%

Mcap tumbles over Rs 1 lakh crore after Q2 earnings

Mukesh-Ambani-FII-Twitter Reliance Industries chairman Mukesh Ambani at the Future Investment Initiative in Riyadh, Saudi Arabia | Prasar Bharati Twitter

Asia's richest man, Mukesh Ambani, lost nearly $7 billion from his net worth after shares in Reliance Industries Ltd. tumbled following the drop in the company's oil revenues in the second quarter due to the impact of the coronavirus pandemic. 

According to the Bloomberg Billionaire's Index, Ambani's net worth dropped by nearly $7 billion to reach $71 billion.

RIL shares dropped 8.6 per cent in value on Monday, its biggest slip since March 23, and the worst performer on the Sensex, which rose 0.4 per cent overall.

The stock tumbled 8.62 per cent to close at Rs 1,877.30 on the BSE. During the day, it tanked 9.46 per cent to Rs 1,860.

On the NSE, it declined 8.61 per cent to close at Rs 1,877.45.

The company's market valuation also eroded by Rs 1,19,721.68 crore to Rs 12,69,437.32 crore on the BSE.

RIL was the top laggard among the Sensex and Nifty constituents.

In traded volume terms, 14.44 lakh shares were traded at the BSE and 4.58 crore units on the NSE during the day.

RIL on Friday reported a 15 per cent drop in second-quarter net profit after a slump in core oil and chemicals business dragged down continued good showing in consumer-facing verticals such as telecom.

The earnings announcement came after market close on Friday.

Net profit was attributable to owners at Rs 9,567 crore in July-September compared with Rs 11,262 crore a year back, Reliance said in a stock exchange filing.

The oil-to-telecom-to-retail conglomerate saw consumer-facing units doing well amid the lockdown easing but the core business continued to face pressure.

The firm's net addition of 7.3 million subscribers and per-user revenue rising to Rs 145 helped the telecom business soar.

Digital services, which include the telecom arm Jio, saw pre-tax profit surge 53 per cent to Rs 8,345 crore as revenues soared by more  than one-third.

Petrochemicals revenue fell 23 per cent to Rs 29,665 crore and pre-tax profit dropped 33 per cent at Rs 5,964 crore.

With inputs from PTI

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