For the first quarter ended 30th June, 2020, Reliance Industries Limited (RIL) achieved revenue of Rs. 100,929 crore ($13.4 billion), as compared to Rs. 174,087 crore in the corresponding period of the previous year. 

 

The decline in revenue was primarily due to fall in O2C revenues, led by sharp decline of 57.6% in average Brent crude price. 

 

Profit after tax (including exceptional item) increased by 30.6% at Rs. 13,248 crore ($1.8 billion) as against Rs. 10,141 crore in the corresponding period of the previous year.

 

Retail business also witnessed 17% decline in revenues due to lockdown and restrictions in store operations. Overall decline in revenue was partially offset by increase in revenue of Digital services business with strong subscriber addition and significant improvement in ARPU.

 

Exports (including deemed exports) from RIL’s India operations declined by 34.8% to Rs. 32,681 crore ($4.3 billion) as against Rs. 50,158 crore in the corresponding period of the previous year due to lower price realizations. This was partially offset by increase in export volumes of Petrochemicals and Refining products.

 

EBITDA declined by 11.8% to Rs. 21,585 crore ($ 2.9 billion) from Rs. 24,486 crore in corresponding period of the previous year. The decrease in EBITDA was primarily due to lower contribution from O2C business, which was impacted by significant demand destruction and margin pressure across transportation fuels and polyester chains. 

 

The Finance cost was at Rs. 6,735 crore ($892 million) as against Rs. 5,109 crore in corresponding period of the previous year. The increase in finance cost was due to higher loan balances and adverse exchange rate movement. This was partially offset by rate cuts in the domestic market. 

 

Commenting on the results, Mukesh D Ambani, Chairman and Managing Director, Reliance Industries said, “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. Our consumer facing businesses became the lifeline for individuals and businesses with our Retail and Jio teams working hard to ensure millions got essential goods and services through the lockdown."