RIL profit jumps 31% even as revenue declines 42%
One-time gain from stake sale lifts net
Reliance Industries Ltd. (RIL) on Thursday reported first-quarter profit increased 31% to ₹13,248 crore, from ₹10,141 crore in the year-earlier period.
Profit included an exceptional gain of ₹4,966 crore (net of taxes ₹1,508 crore) from the disinvestment in Reliance BP Mobility Services Ltd., RIL said in a filing.
Revenue plunged 42% in the April-June period to ₹1,00,929 crore.
“The decline in revenue was primarily due to fall in O2C [oil to chemicals] revenues, led by sharp decline of 57.6% in average Brent crude price,” the company said. “Retail business also witnessed 17% decline in revenues due to lockdown and restrictions in store operations,” it added.
“Overall decline in revenue was partially offset by increase in revenue of digital services business with strong subscriber addition and significant improvement in ARPU,” it said.
All businesses except Jio reported lower EBITDA.
While Jio’s EBITDA surged 55.4%, petrochemicals and refining & marketing units saw EBITDA fall 49.7% and 25.8%, respectively. The EBITDA of oil and gas exploration and media businesses declined 115.5% and 41.3%, respectively.
Exports (including deemed exports) from RIL’s India operations slid by 34.8% to ₹32,681 crore due to lower price realisations. This was partially offset by increase in export volumes of petrochemicals and refining products, it said.
“The severe demand destruction due to global lockdowns impacted our hydrocarbons business but the flexibility in our operations enabled us to operate at near normal levels and deliver industry leading results,” chairman and managing director Mukesh Ambani said in the statement.
“Our consumer facing businesses became the lifeline for individuals and businesses with our Retail and Jio teams working hard to ensure millions got essential goods and services through the lockdown,” he added.
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