Reliance Q1 net profit zooms to 13,248 crore
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 - Mukesh Ambani, CMD, RIL
Mumbai: Beating estimates, energy-to-telecom conglomerate Reliance Industries on Thursday reported a 30.60 per cent rise in consolidated net profit year-on-year (YoY) at Rs 13,248 crore for the quarter ended June 30. The rise in net profit was driven by a major 54 per cent YoY growth in other income at Rs 4,388 crore.
The company booked a one-time gain of Rs 4,966 crore on an investment by British oil major BP in its fuel marketing business - Reliance BP Mobility Services. The company also managed to bring down total expenditure by about 42 per cent YoY to Rs 87,406 crore from Rs 1,50,858 crore in Q1FY20.
At the same time, its consolidated total income was at Rs 1,00,929 cr. The company stated that the group's operations and revenues for the quarter were impacted by the Covid-19 disruption. Consolidated EBITDA declined 11.80 per cent YoY to Rs 21,585 crore against Rs 24,486 crore reported for the same period last year. "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," said Mukesh Ambani, Chairman and Managing Director, RIL. Our consumer facing businesses became the life-line for individuals and businesses with our Retail and Jio teams working hard to ensure millions got essential goods and services through the lockdown. We completed the largest fund raise in Indian corporate history in this quarter, he added.
"I thank the millions of individual investors who supported our rights Issue and welcome all our new partners to anexciting new phase of growth at Reliance." he said. Reliance Jio Infocomm, the group's telecom arm, reported 182.82 per cent growth in net profit at Rs 2,520 crore for the quarter against Rs 891 crore reported for the same period last year.
The company, however, said Reliance Retail's EBITDA was positive and resilient despite the limitations of the quarter, and cost management initiatives led to savings on fixed cost, which in turn helped cushion the impact of lower profits from lower sales. Revenues from the petrochemicals business declined 33 per cent to Rs 25,192 crore, primarily due to lower price realisations due to the Covid-19 disruptions in local and regional markets. The segment's EBITDA declined 49.7 per cent YoY to Rs 4,430 crore.