Reliance gets Rs 39,880 crore profit in 2019-20, 10-50% reduction in employees’ salaries

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Reliance Industries, India’s highest profitable company, has decided to cut the wages of most employees due to the Kovid-19 crisis. This reduction will be from 10 to 50 percent. The annual cash bonus and performance related incentives, usually given in the first quarter of the financial year, have also been deferred. Heads of different verticals of the company have sent information regarding salary cuts to their employees. It is worth mentioning that on Thursday, the company released the results according to which it has made a profit of Rs 39,880 crore in the entire financial year 2019-20. The company had a profit of Rs 39,837 crore in 2018-19 too.

Corona virus affected hydrocarbon business

The management has said that the company’s hydrocarbon business has been severely affected by the lockdown due to Corona virus, demand for refined products and petrochemicals remains very low. Due to reduced business, it has become necessary to remove expenses on every front. The situation is such that we need to pay maximum attention to operating expenses and fixed expenses and we all need to cooperate in this.

Mukesh Ambani will not take salary this year

The salary of employees whose annual salary is less than Rs 15 lakh will not be deducted. The salary of those above this will be cut by 10%. Mukesh Ambani, chairman of Reliance Industries, takes Rs 15 crore every year, this year he will not take any money. The package of executive directors, executive committee members and other senior officials will be reduced by 30 to 50 per cent.

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37% fall in quarterly profits

According to the results released by the company, in the January-March 2020 quarter, the company’s revenue was Rs 1,51,202 crore and profit was Rs 6,546 crore. Revenue stood at Rs 1,55,151 crore and profit was Rs 10,427 crore in the same quarter a year ago. There is a decline of 2.5% in revenue and 37.2% in profit. Revenue for the entire 2019-20 has been 6,59,205 crores and profit of 39,880 crores. Revenue is 5.4 percent more than last year and profit is 0.1 percent higher. Reliance Jio’s operating revenue for the January-March quarter was Rs 14,837 crore and profit was Rs 2,331 crore. On an annual basis, there has been an increase of 26.6% in revenue and 177.5% in profit. The company has announced a dividend of Rs 6.50 per share. It has also announced a rights issue worth Rs 53,125 crore. This will be India’s largest rights issue. One share will be given for Rs 1,257. The promoters will not only buy shares of their shares in the rights issue, they will also buy those shares which are not sold.

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