2 Lakh Reliance Employees Will Get Special Bonus As Company Earns Rs 147 Crore/Day In Last 12 Months
India’s largest company in terms of market capitalization, Reliance Industries (RIL) has rolled out bonus or variable payout to more than 2 lakh of its employees, after reporting a 35% spike in its net profit for the last financial year.
The bonus has been rolled out to the employees of RIL’s five divisions, which includes the oil-to-chemicals (O2C) as well as consumer segments.
The Mukesh Ambani led conglomerate also reported that FY21 witnessed an exceptionally well-performed consumer business for RIL, contributing significantly towards the company’s earnings.
RIL Records Net Profit Spike of Rs 53,739 Cr
Reliance Industries (RIL) reported a profit growth of 35% to Rs 53,739 crore for financial year 2020-21 on Friday.
This result has been witnessed despite the given FY being the first full financial year of the coronavirus pandemic.
Consequently, the company has rolled out bonuses to over 2 lakh employees, spanning over its 5 divisions, including O2C and consumer segment, which includes retail and telecom.
The company has reported that a major contribution to the profit growth has come from its consumer business, which has seen an increase in online shopping and greater reliance on data for work, amid the pandemic.
As a result, the company has added over 75,000 to its consumer business segment in fiscal 2021.
During the same year, the company’s employee benefits expenses increased 5% to Rs 14,817 crore, informs TOI.
RIL’s O2C Business Performance
While Reliance Industries have reported an extraordinarily positive performance of its consumer business segment, its O2C segment, which comprises refining and petrochemical businesses, including jet fuel, did not perform well.
O2C is RIL’S traditional business and its operating profit declined by 29% to Rs 38,170 crore in FY2021.
The demand for major products in this business dropped for the previous fiscal, due to the pandemic.
The performance of O2C deteriorated to the extent that RIL has to slash the salaries of O2C employees earning more than Rs 15 lakh p.a. by 10%.
Besides, their annual bonus/performance-linked incentives were also deferred.
During this time, RIL said that its chairman Mukesh Ambani will also forgo his compensation for the entire fiscal 2021.
However, six months later, RIL reversed the 10% cut in salary retrospectively from April 2020 and paid bonuses that were deferred to the O2C employees.