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RIL on Friday reported a 7.2% decline, in its consolidated net profit at Rs 12,273 crore

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Reliance Industries Limited (RIL) on Friday reported a 7.2 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 12,273 crore for April-June quarter. Before exceptional items, the company’s net profit rose 66.7 per cent to Rs 13,806 crore.

RIL’s revenue from operations rose 58.2 per cent to Rs 1,44,372 crore from Rs 91,238 crore in the year-ago quarter, which was hit by the nationwide lockdown imposed to curb the spread of COVID-19 infections.

The company said its earnings before interest, tax, depreciation and amortisation (EBIITDA) rose 27.6 per cent YoY to Rs 27,550 crore during the quarter under review.

“I am happy that our company has delivered robust growth despite facing a highly challenging operating environment caused by the second wave of the COVID pandemic. The results of the first quarter of FY2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket,” RIL CMD Mukesh Ambani said.

Jio Platforms Ltd, a subsidiary of the company, posed a 44.9 per cent YoY increase in net profit at Rs 3,651 crore during the quarter. During the quarter under review, Reliance Retail Ventures Limited reported a net profit of Rs 962 crore, higher by 123.2 per cent YoY.

COVID-related restrictions on store operations during the quarter impacted our retail business operations and profitability. This is a temporary phenomenon. We remained focused on ensuring supplies of necessities, including food, grocery, health & hygiene products through a combination of online-offline channels,” Ambani said.

RIL’s oil to chemicals (O2C) business posted a 75.2 per cent increase in revenue to Rs 1.03 lakh crore, while EBITDA margin was at 11.9 per cent during the quarter as against 13.9 per cent a year ago and 11.3 per cent in the preceding March quarter.

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“Weakness in domestic demand with onset of second wave of COVID during the quarter resulted in increased export placement, supporting high utilization rates across manufacturing facilities,” RIL said.