Reliance Industries Ltd , India’s most respected firm, on Friday posted a near-flat quarterly revenue as export tax on refined fuels and weak refining margins dented efficiency at its mainstay oil-to-chemical enterprise.
The Mukesh Ambani-led conglomerate stated consolidated revenue was 136.56 billion Indian rupees ($1.65 billion) within the second quarter ended Sept. 30, in contrast with 136.8 billion rupees a 12 months earlier.
“Efficiency of our O2C enterprise mirror subdued demand and weak margin surroundings throughout downstream chemical merchandise,” Ambani, chairman and managing director of Reliance, stated in an announcement.
The oil-to-chemical (O2C) enterprise that witnessed a fantastic run over the previous few quarters on increased demand for transportation fuels, helped by low-cost Russian crude, noticed refinery margins cooling off from file highs within the quarter.
A much bigger shock got here within the type of windfall tax on exports of gasoline, diesel and aviation gas levied by the Indian authorities.
The export obligation adversely impacted revenue for the quarter by 40.39 billion rupees, Reliance stated.
Earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) for the O2C phase dropped 5.9% year-on-year to 119.68 billion rupees.
Reliance additionally shut a crude distillation unit and gasoline making fluid catalytic cracker at Jamnagar in Gujarat in September for ordinary upkeep.
The retail enterprise, which suffered probably the most in coronavirus-led lockdowns, noticed income development of 42.9% within the quarter as footfalls continued to surge, whereas the telecom unit Reliance Jio reported a 28% rise in revenue.