Mukesh Ambani-led Reliance Industries (RIL) reported a 15% drop in its net profit for the Oct – Dec 2022 quarter as higher finance costs, the new windfall profit tax and depreciation neutralised strong operating performance.

The oil-to-telecom conglomerate posted consolidated net profit of Rs 15,792 crore for the quarter ended December 31, 2022 as compared to Rs 18,549 crore during the quarter ended December 31, 2021.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “In O2C business, middle distillate product fundamentals remain strong with firm demand, constrained supply, and high natural gas prices in Europe.

Downstream chemical products witnessed margin pressure with excess supply and relatively weak regional demand. Our focus remains on operating safely and reliably producing vital fuel and materials for consumers…

Our upstream business delivered robust growth with sustained production from KG D6 block along with higher realization. We are on track to reach 30 MMSCMD of gas production in FY 24 after the commissioning of MJ field. This will significantly enhance India’s energy security in a volatile energy market environment.

We are making rapid progress towards implementation of new energy Giga factories at Jamnagar as part of our commitment to revolutionizing the green energy sector. Our strong balance sheet and robust cash flows remains the cornerstone of our commitment in growing existing businesses as well as investing in new opportunities.”

For O2C business, quarterly revenues increased on account of higher price realisation as crude oil prices went up by 11%. Revenue growth was constrained by lower throughput with planned Maintenance & Inspection activity turnaround during the quarter. Exports increase led by higher price realisations despite lower downstream product volumes.

Growth in EBITDA was supported by strength in middle distillate cracks. This was however, partially offset by weak margins across polymer, polyester chain and light distillates products. Continued SAED on transportation fuels also impacted earnings by Rs 1,898 crore.