- Reliance Industries beats analysts' estimates despite 45% revenue fall
- One-time gain of Rs 4,966 crore from BP's investment helped Reliance
- Revenue from oil and gas operations declined 45.2%
Here are 10 things to know:
Reliance Industries' profit jumped despite a decline in revenue, on the back of a one-time gain of Rs 4,966 crore from global oil major BP's investment in its fuel retail business. BP is investing Rs 7,629 crore for a 49 per cent stake in the company's fuel retailing business.
The coronavirus pandemic is causing "significant disturbance and slowdown of economic activity" globally and in India, Reliance Industries said in an exchange filing.
COVID-19 impacted the group's operations and revenue during the quarter, said Reliance Industries, which reported a decline of 44 per cent in revenue to Rs 91,238 crore in the first quarter of current financial 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, Reliance Industries.
Mumbai-based Reliance Industries said revenue from its oil and gas operations declined 45.2 per cent to Rs 506 crore in the quarter, due to lower production in domestic business after the closure of the Panna Mukta and D1D3 fields, and lower prices.
Its 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. Reliance Industries said the GRM was impacted by lower product cracks and a narrower light-heavy crude differential.
"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," Mr Ambani added.
The profit of Reliance Industries' telecom arm, Reliance Jio Infocomm, nearly tripled to Rs 2,520 crore in the quarter ended June 30, from Rs 891 crore in the year-ago period.
Jio's average revenue per user - a key metric of profitability - improved to Rs 140.30 per month from Rs 130.60 per month in the previous quarter.
Reliance Industries shares ended 0.61 per cent higher at Rs 2,108.65 earlier in the day, outperforming the Sensex which ended nearly 1 per cent lower.