Shares of Reliance Industries (RIL) dropped more than 2% after the Oil-to-telecom company reported a sharp fall in consolidated revenue during April-June quarter.
However, it clocked a robust 31% on year rise in net profit helped by a one-time gain on investment by Britain’s BP in its fuel marketing business—Reliance BP Mobility Services.
Billionaire Mukesh Ambani owned company’s consolidated net profit stood at Rs 13,248 crore for the quarter ended June 30, 2020, as against Rs 10,104 crore, despite the disruption caused in the wake of the COVID-19 pandemic. The number was ahead of street expectations.
Consolidated income from operations for the quarter stood at Rs 91,238 crore compared to Rs 1,62,353 crore during the same period last year. Gross revenues stood a little over Rs 1,00,000 crore.
Jio Infocomm, it technology arm, reported strong performance during the quarter under review. Average Revenue Per User (ARPU) coming in at Rs 140. Jio’s revenue rose 34% to Rs 19,513 crore, EBITDA spiked 55% on-year to Rs 7,281 crore, and net profit nearly trebled to Rs 2,520 crore.
The gross refining margin (GRM) – a key measure of profitability for an oil refining company – reduced to $6.3 per barrel in the April-June period from $8.9 per barrel in the previous quarter, impacted by lower product cracks and a narrower light-heavy crude differential.
Refining and Petrochemicals business performed well at the operating profit level due to optimized crude procurement, relatively higher utilization, cost management and agile product placement. Reliance Retail’s topline performance was resilient considering the adverse operating environment.
RIL shares has smashed several records over the past few weeks. At Thursday’s closing price, it remains the country’s most valuable company with a market capitalisation (M-Cap) of Rs 13.59 lakh crore.
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