Reliance Industries Limited (RIL) posted a near flat quarterly profit as export tax on refined fuels and weak refining margins dented performance at its mainstay oil-to-chemical business. The company posted net profit of Rs 13,656 crore for the quarter ended September 30, 2022 as against Rs 13,680 crore in the year-ago quarter.

Moreover, revenues surged 33.7 percent to Rs 2.32 lakh crore led by strong performance of the oil-to-chemical, telecom and retail operations in the quarter.

Segment wise, revenue from dominant oil-to-chemicals (O2C) business increased by 32.5% to Rs 1.59 lakh crore primarily on account of higher crude oil prices. RIL’s production meant for sale was lower by 3.6% Y-o-Y with planned turnaround of primary and secondary units of SEZ refinery for M&I. RIL’s cracker operating rate was at 95% in 2Q FY23 as compared to 87% in 1Q FY23.

Segment EBITDA for 2Q FY23 declined by 5.9% Y-o-Y to Rs 11,968 crore primarily on account of introduction of SAED on transportation fuels and lower Polymer deltas. SAED related costs during the quarter was Rs 4,039 crore. Reliance BP Mobility Limited profitability continued to be adversely impacted as retail fuel prices remained capped despite higher benchmark product prices.

The O2C business that witnessed a great performance over the past few quarters on higher demand for transportation fuels, helped by cheap Russian crude, saw refinery margins cooling off from record highs in the quarter.

“Performance of our O2C business reflect subdued demand and weak margin environment across downstream chemical products. Transportation fuel margins were better than last year but significantly lower sequentially. Segment performance was also impacted by the introduction of special additional excise duties during the quarter to ensure stable supply and lower volatility in the domestic market,
Reliance Industries Limited, Chairman and Managing Director, Reliance Industries Limited, said.

“Our domestic Oil & Gas business continued to deliver robust performance maintaining production at 19 MMSCMD levels in the KG D6 block, significantly enhancing energy security for the country. We are confident of commissioning MJ Fields by year end,” Ambani added.