Reliance Industries (RIL) cash balance increases almost 100%

by khalid on 25/04/2011 · 4 comments

India’s number 1 company Reliance Industries Limited (RIL) has reported a tremendous increase in its cash balance to Rs 42,393 crore at the end of last fiscal ended 31st March 2011, as against Rs 21,874 crore a year ago. Besides, its debt-to-equity ratio is very low at 0.17 (meaning Rs 17 debt for every Rs 100 equity capital), which could allow it to raise significant debts whenever needed.

Billionaire Mukesh Ambani-led Reliance Industries group is planning to invest more than Rs 1,50,000 crore over the next five years. The company wants to enter into a number of new businesses and expansion of existing ones. With the huge cash pile of over Rs 42,000 crore, the company would easily raise funds from the market as per its reputation and with a very low debt-to-equity ratio . It would raise funds mostly through overseas bonds and partly through project equity.

Reliance Industries Limited (RIL)’s annual general meeting (AGM) is due to held on 3rd June 2011 and these initiatives could be announced by the group chief Mukesh Ambani in this AGM. Major investments of Rs 1,00,000 crore will be in group’s core businesses of petrochemicals and energy exploration and production and besides that new initiatives in telecom, power and financial services sectors would also witness investments worth at least Rs 50,000 crore in the next few years.

Reliance Industries Limited (RIL)’s revenue rose by 29% in the fiscal FY11 to Rs 258,651 crore, while its net profit increased by 25% to Rs 20,286 crore.

Share’s Data :-
BSE Code : 500325
Market Cap : Rs 332,144.04 Crores
Reliance Industries share’s CMP is Rs 1,015.95 on 25th April 2011.

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