New Delhi, October 30
Reliance Industries Ltd on Friday reported a 15% drop in its second quarter net profit on weak oil business.
The company posted a net profit of Rs 9,567 crore in July-September quarter as compared to Rs 11,262 crore in the corresponding period previous fiscal.
Reliance, led by Asia’s richest man Mukesh Ambani, has in recent years built massive retail and telecom businesses to tap into India’s consumer boom and reduce its dependence on the energy sector.
Refining revenue plunged 36%, said Reliance, which operates the world’s biggest oil refining complex. Petrochemicals revenue fell 23%.
Oil demand has collapsed as the Covid pandemic disrupts global travel and business, hurting sales of refined products such as gasoline, diesel and jet fuel.
Its gross refining margin — the profit earned on each barrel of crude oil processed — slumped to $5.7 per barrel, lower than the $6.3 in the previous quarter and the $9.4 a year earlier.
Meanwhile, Reliance Jio — India’s largest telecom operator by customers —continued to be a bright spot as revenue surged by 33% to Rs 17,481 crore during the quarter under review compared to Rs 13,130 crore in the same period previous fiscal. The number of subscribers surged past 400 million. It posted an almost three-fold jump in net profit to Rs 2,844 crore for the second quarter ended September 30. — Agencies