The wealth of Asia’s top billionaire fell by about $ 6.5 billion on Monday after his conglomerate’s shares fell as much as 8.6%, according to the Bloomberg Billionaires Index, which tracks the world’s richest people.
Reliance Industries shares fell in Mumbai after the company posted disappointing earnings on Friday night, mainly due to a difficult quarter for its giant oil refinery business. That unit’s earnings “were much weaker than our estimate,” Nomura analysts wrote in a research note after the report.
Pre-tax earnings fell 30% for the three months through September compared to a year earlier, although other parts of Reliance helped offset the drop in oil, including its retail and technology units, analysts said. Reliance shares changed little on Tuesday.
Reliance is one of the most valuable and recognized companies in India. The powerful conglomerate, which encompasses oil, petrochemicals, telecommunications and retail, has undergone a shift in focus recently as Ambani, its president and CEO, tries to transform it into a global tech giant.
Ambani came to attention earlier this year after raising more than $ 20 billion in just four months for the technology arm of his business, Jio Platforms. Half of that was secured in just one month, underscoring the executive’s aggressive ambitions.
Analysts have said the CEO is under pressure to test the technology his company has developed and offset the massive drops it is experiencing in oil and other sectors. The coronavirus pandemic has devastated global demand for oil this year, due to sharp drops in travel, transportation, industrial and commercial activity.
Ambani’s ambitions don’t end with technology. Last month, the billionaire continued his fundraising spree, this time focusing his efforts on the company’s shopping empire, Reliance Retail. And in recent weeks, Reliance has clashed with the American giant Amazon (AMZN) on a deal it struck with a local retail chain, underscoring the fierce battle the company is fighting to improve its position in the industry.
Ambani, still estimated to be worth $ 71 billion, became one of the 10 richest people in the world this year as he built his group’s massive war chest. Shares of Reliance Industries are up 25% so far this year, helping to boost Ambani’s net worth by more than a fifth, or $ 12.5 billion, according to Bloomberg Billionaires.
– Sherisse Pham contributed to this report.
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