Reliance Industries Q2 net falls 15% on weak oil business
New Delhi: Billionaire Mukesh Ambani's Reliance Industries Ltd on Friday reported a 15 percent drop in second-quarter net profit after a slump in core oil and chemicals business dragged down continued good showing in consumer-facing verticals such as telecom.
Net profit attributable to owners at Rs 9,567 crore in July-September compared with Rs 11,262 crore a year back, Reliance said in a stock exchange filing.
The oil-to-telecom-to-retail conglomerate saw consumer-facing units doing well amid the lockdown easing but the core business continued to face pressure.
The firm's net addition of 7.3 million subscribers and per-user revenue rising to Rs 145 helped the telecom business soar.
Digital services, which include the telecom arm Jio, saw pre-tax profit surge 53 percent to Rs 8,345 crore as revenues soared by more than one-third.
With markets gradually opening up in the second quarter after a strict lockdown, revenue from the retail business was almost flat at Rs 39,199 crore and EBITDA was 14 percent lower at Rs 2,009 crore.
Petrochemicals revenue fell 23 percent to Rs 29,665 crore and pre-tax profit dropped 33 percent at Rs 5,964 crore.
Refining EBITA almost halved to Rs 3,002 crore as revenue slumped 36 percent.
The firm's twin refineries earned USD 5.7 per barrel on turning every barrel of crude oil into fuel.
The profit in Q2 was lower sequentially as well as the April-June earning of Rs 13,248 crore included a one-time gain of Rs 7,629 crore from sale of 49 percent stake in petro retailing business to BP.
The company has sold a minority stake in the retail and telecom businesses to investors such as Silver Lake and KKR. It raised Rs 1.52 lakh crore from the sale of stake in Jio Platforms and another Rs 37,710 crore from the sale of an 8.48 percent stake in its retail unit.
The firm had a gross debt of Rs 279,251 crore as of September 30, down from Rs 336,294 crore in the previous quarter. After considering Rs 185,711 crore of cash and Rs 30,210 crore received from stake sale deals that have closed and another Rs 73,586 crore pending from the strategic investors, the firm had a surplus of Rs 10,250 crore.
Commenting on the results, Reliance Industries Chairman and Managing Director Mukesh Ambani said, "We delivered strong overall operational and financial performance compared to the previous quarter with recovery in petrochemicals and retail segment and sustain growth in the digital services business."
"Domestic demand has sharply recovered across our oil-to-chemical (O2C) business and is now near the pre-Covid level for most products. Retail business activity has normalized with strong growth in key consumption baskets as lockdown ease across the country," he added.
With large capital raise in the last six months across Jio and retail business, several strategic and financial investors have joined the Reliance family, he said.
"We continue to pursue growth initiatives in each of our businesses with a focus on the India opportunity," he further said.
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Kerala: 'Kallakkadal' red alert revised to orange warning
Thiruvananthapuram (PTI): The Indian National Centre for Ocean Information Services on Saturday withdrew a 'red alert' issued for 'Kallakkadal' in the coastal areas of Kerala and the south Tamil Nadu coast and revised it to an 'orange alert'.
'Kallakkadal' is a phenomenon of sudden sea swells causing rough waves in coastal areas.
As part of the phenomenon, the low-lying areas of the Kerala coast are likely to experience rough sea and sea surge due to extremely strong waves of 0.5 meters to 1.5 meters till 11.30 pm on Sunday, the INCOIS said.
The low-lying coastal areas of south Tamil Nadu are also likely to experience a similar situation and high waves of 0.5 meters to 1.8 metres may cause sea surge there till tomorrow night, the agency warned.
INCOIS, the central agency that issues weather warnings for fishermen in the country, advised people to safely moor their fishing vessels in the harbour.
Authorities advised people to continue their caution and avoid trips to the beach and completely stay away from activities at sea.
The term 'Kallakkadal' literally means a sea that comes suddenly like a thief.
INCOIS has earlier said that the swells result from strong winds in the southern part of the Indian Ocean at certain times, and that they occur suddenly without any particular indications or warning which is why it is named 'Kallakkadal'.
