RIL Q1 net drops 11% as oil-to-chemicals business takes a hit

The board of directors of RIL has recommended a dividend of Rs 9 per share for its 35 lakh shareholders.

Gross revenue was Rs 231,132 crore ($28.2 billion), down 4.7 per cent from Rs 242,529 crore due to sharp decline in O2C revenues with a 31 per cent fall in crude oil prices. However, this is partially offset by continued growth in consumer businesses and increase in volumes from O2C (oil to chemicals) and oil & gas business.

RIL’s subsidiary Reliance Jio Platforms has posted a 12.5 per cent rise in net profit at Rs 5,098 crore for the June quarter from Rs 4,530 crore a year ago. Gross revenue increased 11.3 per cent to Rs 30,640 crore during the quarter.

Reliance Retail, another RIL subsidiary, reported an 18.8 per cent growth in net profit at Rs 2,448 crore and gross revenue rose by 19.5 per cent to Rs 69,948 crore for the June quarter.

RIL shares closed 2.57 per cent lower at Rs 2,536.20 on the BSE on Friday. Its market capitalisation was at Rs 17.15 lakh crore.

RIL Chairman and Managing Director Mukesh Ambani said: “Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments.”

Jio’s wide range of quality offerings at affordable price points has enabled strong growth in subscriber base, which reflects in the financial performance of the digital services business, he said. “Accelerated roll-out of Jio’s True 5G services is propelling the nation’s digital transformation at an unprecedented pace. In another step towards democratizing internet in India, Jio launched the “JioBharat” Phone Platform, making internet technology accessible and affordable to every Indian,” Ambani said.