Mukesh Ambani loses $5 billion from his net worth as oil sinks RIL shares

News Network
November 2, 2020

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Mukesh Ambani, Asia’s richest man, lost as much as $5 billion from his net worth as Reliance Industries Ltd’s shares tumbled to the lowest price in more than three months following a drop in quarterly profit.

The stock of India’s most-valuable company fell as much as 6.8% in Mumbai on Monday as of 12:21 pm, slipping the most since May 12 and touching the lowest since July 20. The benchmark S&P BSE Sensex only declined as much as 0.7%. The slide also shaved down Ambani’s wealth to about $73 billion to mark his worst day since March, according to the Bloomberg Billionaires Index.

The refining-to-retail conglomerate reported a 15% decline in quarterly profit to Rs 9,570 crore ($1.3 billion) late on Friday, as the coronavirus pandemic hit fuel demand. Revenue fell 24% to Rs 1.16 lakh crore.

Reliance’s oil refining unit has suffered a plunge in demand for transportation fuels, with Covid-19 forcing people to stay home. The conglomerate is in the midst of a transformation led by Ambani, 63, as he looks to turn the oil-and-petrochemicals giant into a technology and digital services company by bolstering its telecom and e-commerce businesses.

Reduce Dependence

The slip in earnings backs Ambani’s strategy and highlights the increasing need for Reliance to reduce its dependence on the energy sector and boost businesses that seek to leverage India’s billion-plus consumers.

Reliance’s gross refining margin -- or profit from refining a barrel of crude oil into fuels -- fell to $5.7 per barrel in the latest quarter compared with $9.4 a year earlier, the company said. Meanwhile, the profit at its telecom business under Reliance Jio Infocomm Ltd. nearly tripled over the same period.

Reliance shares have rallied about 29% this year, while Sensex has slipped 4%, as investors cheered Ambani’s fundraising spree that saw Reliance mop over $25 billion by selling stakes in its digital and retail units. The jump also triggered one of the biggest wealth surges as Ambani amassed $19.1 billion in 2020 through Friday, becoming the world’s sixth-richest person, according to the Bloomberg Billionaires Index.

“The stock is correcting a part of its sharp gains registered over the last few months,” said Arun Kejriwal, founder at KRIS, an investment advisory firm in Mumbai. “Now, the market is booking its profits.”

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News Network
December 21,2024

New Delhi: The Ministry of Law and Justice of Prime Minister Narendra Modi-led government has made an amendment to the Conduct of Election Rules, restricting public access to certain electoral documents that were previously available.

The original Rule 93(2)(a) of the 1961 Conduct of Election Rules stated, “all other papers relating to the election shall be open to public inspection.” However, following the amendment on Friday, the rule now reads, “all other papers as specified in these rules relating to the election shall be open to public inspection.”

Activists have raised concerns, claiming that the insertion of the phrase “as specified in these rules” limits access to various official documents created during elections to Parliament and Assemblies, which are not explicitly mentioned in the rules.

RTI activist Venkatesh Nayak pointed out that there are numerous documents, though not listed in the rules, that are generated by election officials such as Presiding Officers, Sector Officers (responsible for constituency vulnerability mapping), and those in charge of EVM movement and replacement of defective machines on polling day. These include reports from general, police, and expenditure observers, as well as Returning Officers and Chief Electoral Officers.

Nayak emphasized, “Access to these documents is crucial for ensuring the fairness of elections and the accuracy of results.”

The amendment comes shortly after the Punjab and Haryana High Court directed the Election Commission to provide video footage and documents related to votes cast at a polling station in the recent Haryana Assembly elections to lawyer Mehmood Pracha. Pracha has criticized the amendment, asserting that it will withhold essential information. “This is a reconfirmation of the Election Commission’s bias,” he said.

Nayak further stated, “This amendment undermines the principle of full transparency established by the Supreme Court in the Electoral Bonds case. The notification of this amendment on the very day Parliament was adjourned sine die has deprived MPs of the opportunity to challenge its necessity in real time.”

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News Network
December 23,2024

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Dhaka: Bangladesh's interim government said on Monday that it has sent a diplomatic note to India to send back deposed prime minister Sheikh Hasina to Dhaka.

Hasina, 77, has been living in exile in India since Aug 5 when she fled the country amid the student-led protests that toppled her 16-year regime. Dhaka-based International Crimes Tribunal (ICT) has issued arrest warrants for Hasina and several former Cabinet ministers, advisers, and military and civil officials for "crimes against humanity and genocide".

“We have sent a note verbale (diplomatic message) to the Indian government saying that Bangladesh wants her back here for the judicial process,” Foreign Affairs Adviser or de facto foreign minister Touhid Hossain told reporters at his office.

Earlier in the morning, Home Advisor Jahangir Alam said his office has sent a letter to the foreign ministry to facilitate the ousted premier's extradition from India.

“We have sent a letter to the foreign ministry regarding her extradition. The process is currently underway,” he told reporters in response to a query.

Alam said an extradition treaty between Dhaka and New Delhi already exists and Hasina could be brought back to Bangladesh under the treaty.

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News Network
December 28,2024

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American and British aircraft have conducted new airstrikes on the Yemeni capital, prompting Ansarullah to pledge a response.

The strikes on Friday focused on the Ma’een District in Sanaa, with no casualties reported.

"I heard the blast. My house shook," one Sanaa resident told AFP late Friday.

Israeli media promptly denied any involvement of the regime in these operations.

Nasr al-Din Amer, an official from the Ansarullah movement, emphasized that Yemen’s attacks against Israel will intensify and not decline.

Amer asserted that halting the aggression in Gaza is the only way to prevent further anti-Israel operations by the Yemeni army.

Israeli "aggression will only increase the determination and resolve of the great Yemeni people to continue supporting the Palestinian people", a Houthi statement said Friday.

This latest assault followed Thursday's Israeli aggression on Yemen’s infrastructure, including Sana’a's international airport which left six people dead.

Tens of thousands of people gathered in Sana’a Friday to protest against the Israeli strikes and express solidarity with Palestinians.

"The equation has changed and has become: (targeting) airport for airport, port for port, and infrastructure for infrastructure," protester Mohammed al-Gobisi said.

"We will not get tired or bored of supporting our brothers in Gaza."

On Friday, the demonstrators staged rallies in the capital Sana’a, and the provinces of Sa’ada, Hudaydah, Hajjah, and al-Mahwit under the slogan “We firmly stand with Gaza, the glory…without limits and without red lines,” carrying the Yemeni and Palestinian flags.

Similar rallies also took place in the provinces of Raymah, ʽAmran, Dhale, Lahij, Ma’rib, al-Bayda, Ta’izz, Ibb, and Dhamar.

The protesters voiced their solidarity with the Palestinians in defiance of the Israeli strikes on Yemen, chanting “We will continue to bomb you…escalation for escalation.”

They hailed the latest Yemeni attacks conducted earlier in the day against Israeli targets, calling on the armed forces to intensify their retaliatory operations.

Israel launched a genocidal war on Gaza on October 7, 2023, after the Palestinian resistance movement Hamas waged the surprise Operation Al-Aqsa Storm against the occupying entity in response to the Israeli regime's decades-long campaign of bloodletting and devastation against Palestinians.

The regime’s bloody onslaught on Gaza has so far killed at least 45,436 Palestinians, mostly women and children, and injured more than 108,038 others. Thousands more are also missing and presumed dead under rubble.

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