NEW DELHI: Reliance Industries, India’s largest company by market capitalization, announced its financial results for the first quarter on Friday. The conglomerate, which has interests spanning from retail to telecom, reported a profit that fell short of analysts’ expectations. The lower margins on fuel sales were cited as the primary reason for the disappointing performance.
The company, led by billionaire Mukesh Ambani, reported a consolidated profit of 151.38 billion rupees ($1.81 billion) for the April-to-June quarter, a decline from the 160.11 billion rupees recorded in the same period last year.Analysts had projected a profit of 162.87 billion rupees, according to data from LSEG.
Reliance’s oil-to-chemicals segment, a key contributor to its overall earnings, experienced a 14.3% year-on-year decline in earnings before interest, taxes, and depreciation (EBITDA). The EBITDA for this segment stood at 130.93 billion rupees, with the company attributing the decline to lower transportation fuel cracks, particularly a 30% drop in gasoline cracks.
In a statement, Mukesh Ambani, the chairman and managing director of Reliance Industries, acknowledged the challenges faced by the business, stating, “The business was impacted by lower fuel cracks with tepid global demand and ramp-up of new refineries.”
The company’s consolidated net profit for the June quarter stood at Rs 15,138 crore, or Rs 22.37 per share, representing a 5% decrease compared to the Rs 16,011 crore, or Rs 23.66 a share, reported in the corresponding period last year. On a sequential basis, the profit declined by 20% from the Rs 18,951 crore earned in the January-March quarter.
Despite the drop in profits, Reliance Industries reported an increase in revenue from operations, which rose to Rs 2.36 lakh crore in the April-June quarter from Rs 2.10 lakh crore in the same period last year.
(With inputs from agencies)
The company, led by billionaire Mukesh Ambani, reported a consolidated profit of 151.38 billion rupees ($1.81 billion) for the April-to-June quarter, a decline from the 160.11 billion rupees recorded in the same period last year.Analysts had projected a profit of 162.87 billion rupees, according to data from LSEG.
Reliance’s oil-to-chemicals segment, a key contributor to its overall earnings, experienced a 14.3% year-on-year decline in earnings before interest, taxes, and depreciation (EBITDA). The EBITDA for this segment stood at 130.93 billion rupees, with the company attributing the decline to lower transportation fuel cracks, particularly a 30% drop in gasoline cracks.
In a statement, Mukesh Ambani, the chairman and managing director of Reliance Industries, acknowledged the challenges faced by the business, stating, “The business was impacted by lower fuel cracks with tepid global demand and ramp-up of new refineries.”
The company’s consolidated net profit for the June quarter stood at Rs 15,138 crore, or Rs 22.37 per share, representing a 5% decrease compared to the Rs 16,011 crore, or Rs 23.66 a share, reported in the corresponding period last year. On a sequential basis, the profit declined by 20% from the Rs 18,951 crore earned in the January-March quarter.
Despite the drop in profits, Reliance Industries reported an increase in revenue from operations, which rose to Rs 2.36 lakh crore in the April-June quarter from Rs 2.10 lakh crore in the same period last year.
(With inputs from agencies)