Reliance Industries Shares Fall After Profit Declines 15% In September Quarter

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Shares of billionaire Mukesh Ambani-promoted company Reliance Industries fell as much as 5.79 per cent to ₹ 1,935.20 on the BSE after its net profit in September quarter declined 15 per cent to ₹ 9,567 crore. The oil-to-telecom conglomerate had posted a net profit of ₹ 11,262 crore in the corresponding period a year ago. Reliance Industries’ revenue from operations fell 24 per cent to ₹ 1,16,195 crore from ₹ 1,53,384 crore in the year-ago period, according to a regulatory filing.

Reliance Industries’ group operations and revenue were impacted by the coronavirus pandemic during the quarter, the company said in a press release.

Its earnings before interest, tax, depreciation and amortization (EBITDA) – or operating profit – increased 7.9 per cent to ₹ 23,299 crore in the three months to September 30, compared to the previous quarter.

The company’s gross refining margin (GRM) – a key measure of profitability for an oil refining company – reduced to $5.7 per barrel in the second quarter of current financial year, from $6.3 per barrel in the April-June period.

However, Reliance Industries’ telecom arm, Reliance Jio Infocomm, reported a nearly three-fold jump in net profit to ₹ 2,844 crore, boosted by COVID-19-related restrictions that led to increased data usage.

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