Mukesh Ambani led Reliance Industries Ltd (RIL) on Thursday announced carving out a new business segment to add to its already diversified portfolio -- Financial Services.
Mukesh Ambani led Reliance Industries Ltd (RIL) on Thursday announced carving out a new business segment to add to its already diversified portfolio — Financial Services. In a press release, India’s most valuable company announced that it has identified financial services as a separate business segment based on the internal reorganization of its business segments. The Financial Services segment comprises management and deployment of identified resources of the company to various activities including non-banking financial services, insurance broking, RIL said. The decision was taken by RIL’s Executive committee or the Chief Decision Making Officer.
The Financial Service segment generated a strong Rs 671 crore revenue in the quarter ending March 2020, up from Rs 240 crore in the previous quarter. In the financial year 2019-20, Reliance Industries made Rs 1,271 crore from the financial services segment. “RIL is engaged in financial services through its treasury investment activities, Payment Bank, Consumer lending business, Insurance broking business among others,” the press release said. Assets of the Financial Services segment of RIL stood at Rs 25,258 crore at the end of the March quarter, adding Rs 17,000 crore worth of assets since March 2019. Liabilities of the segment were reported to be at Rs 78 crore, down from Rs 259 crore in the December quarter. With this Mukesh Ambani could have set the ball rolling for India’s most cash-rich company to enter the realms of new-age banking and financial service. The Payment Bank business of Reliance was started in 2018.
Among other segments; petrochemicals, refining, oil & gas, and organized retail reported a fall in revenue, while digital services reported a rise in revenue. With the fall in gross refining margins for RIL, the refining segment of the business saw revenue fall to Rs 84,854 crore in the March quarter, down from Rs 103,718 crore in the December quarter. Reliance Jio, the telecommunications arm of RIL, saw it net-profit nearly triple to Rs 2,331 crore in the March quarter. The consolidated profit after tax of Reliance Industries stood at Rs 6,348 crore, a 45% fall from the previous quarter.