Reliance's market cap sheds $16 Bn on profit drop; Mukesh Ambani's net worth down ~$6 Bn

After Mukesh Ambani's Reliance Industries Ltd on Friday reported a 15% drop in second-quarter net profit after pandemic-hit oil demand dragged down continued good showing in consumer-facing businesses such as telecom, Asia's richest man lost in region of $6 billion from his net worth as Reliance's shares tumbled most in over seven months following in markets on Monday.

Reliance's market valuation drops

stock tumbled 8.62% to close at Rs 1,877.30 on Bombay Stock Exchange (BSE). During day, it tanked 9.46% to Rs 1,860. On NSE, it declined by 8.61% to close at Rs 1,877.45.  company's market valuation also fell by Rs 1,19,721.68 crore to Rs 12,69,437.32 crore on BSE.

Reliance's earnings anuncement came after market closed 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.  oil-to-telecom-to-retail conglomerate saw consumer-facing units doing well amid lockdown easing but core business continued to face pressure.

conglomerate's net dition of 7.3 million subscribers and per-user revenue rising to Rs 145 helped telecom business soar. Digital services, which include telecom arm Jio, saw pre-tax profit surge 53% to Rs 8,345 crore as revenues soared by more than one-third.

'Strong overall operational & financial performance'

"We delivered strong overall operational and financial performance compared to previous quarter with recovery in petrochemicals and retail segment and sustained growth in Digital Services business," said Mukesh Ambani, Chairman and Managing Director, RIL.

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"Domestic demand has sharply recovered across our O2C business and is w near pre-COVID level for most products. Retail business activity has rmalised with strong growth in key consumption baskets as lockdowns ease across country. With large capital raise in last six months across Jio and retail business, we have welcomed several strategic and financial investors into Reliance family. We continue to pursue growth initiatives in each of our businesses with a focus on India opportunity," he ded.

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(With PTI inputs)