Reliance Streamlines Finances, Becomes Debt-Free!
It might have seemed extremely difficult for everybody including shareholders to keep up with Mukesh Ambani’s promise of making RIL debt – free ten months back. Reliance Industries Ltd. (RIL) is debt free today with a colossal cash balance of Rs.70,252 crore that it has attained this fiscal year ended 31st March, 2012. While its outstanding debt was known to have been Rs. 68,259 crore that accounts to USD 13.4 billion, its cash balance of over Rs 70,252 crore enabled it to be debt – free. While its cash balance last year accounted for Rs. 42, 393 crore, its outstanding debt was comparatively higher amounting to Rs 67,397 crore.
The financial report of RIL this fiscal ended March 31, 2012 gave the conglomerate reasons to cheer. The gearing level increased in comparison to the fiscal ended March 31, 2011, which stood at 13.5%. There were significant growths that RIL witnessed this year in comparison with last year including the highest ever exports of Rs. 208,042 Crore. The consolidated net profit this year is reported to be Rs 19,724 crore and its turnover rose to Rs 339,792 crore increasing by 31.4% that is the highest ever it has ever achieved. However, its net profit for the fourth quarter dropped by 21% to Rs 4,236 crore. The primary investment of this company catered to fixed deposits, certificate of deposits with banks, Government securities and mutual funds.
Mukesh Ambani was known to be delighted about his company‘s strong investment in the mainstay petrochemical business in India and initiating strong base for further growth. When asked to comment about their retail expansion that had made news recently, he stated that the responses they have been receiving from the retail sector have been highly optimistic and they would further endeavor to expand by building more stores across verticals in different places in varied formats. While they are gearing towards the launch of 4G technology, he announced that they would be committed towards providing high-speed wireless data that will be at par with international standards. Since India has a huge potential for wireless market, their broadband services are capable of augmenting their overall growth at a higher level.
Mukesh Ambani is known to be the second richest man in Asia as of 2012 and RIL is the forerunner company of Reliance group that is a leading private sector in the country.
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