Is Reliance Industries really net debt free?
Is Reliance Industries really net debt free?
Having raised a record Rs 2.6 lakh crore of capital in a little under 200 days through stake sales and rights issues, the company has not just declared zero net debt in its annual report for financial year 2020-21 (FY21)—it has declared negative net debt.
How much debt does Reliance have?
As of March 31 2020, RIL’s consolidated debt was ₹3,36,294 crore. So, after deducting ₹30,920 crore cash-on-hand and the ₹2,60,024 crore cash inflow from the recent fund raising, net debt is ₹45,350 crore.
What is net debt free?
Simply put, net debt is borrowings minus cash. So, if a business has debt of ₹100 and cash of ₹40, its net debt would be ₹60 (100 minus 40). So, when a business says it is net debt-free, that does not mean it has repaid all its borrowings.
How much money does Reliance have?
It is also the tenth largest employer in India with over 236,000 employees. RIL has a market capitalisation of US$243 billion as of October 2021….Reliance Industries.
| Type | Public |
|---|---|
| Net income | ₹53,223 crore (US$7.1 billion) (2021) |
| Total assets | ₹1,321,212 crore (US$180 billion) (2021) |
| Total equity | ₹693,000 crore (US$92 billion) (2021) |
Is Tata debt-free?
Tata Motors, announced at last year’s AGM, its aim to become a debt-free company within three years. “The company declared a goal to become a zero-debt company by FY24.
What is the loan amount of Reliance Jio?
Reliance Jio reported a total debt of nearly 232 billion Indian rupees in fiscal year 2020. This was significantly lower than the debt of teh company in the previous year. Reliance Jio, owned by Mukesh Ambani, was a wholly owned subsidiary of Reliance Industries.
Why is net debt important?
Net debt helps to determine whether a company is overleveraged or has too much debt given its liquid assets. A negative net debt means a company has little debt and more cash, while a company with a positive net debt means it has more debt on its balance sheet than liquid assets.
How can I reduce my net debt?
The most logical step a company can take to reduce its debt-to-capital ratio is that of increasing sales revenues and hopefully profits. This can be achieved by raising prices, increasing sales, or reducing costs. The extra cash generated can then be used to pay off existing debt.