Nearly a third of RIL’s profit is shaved off by the dent in refining

Nearly a third of RIL’s profit is shaved off by the dent in refining
RIL
  • Reliance Industries (RIL) reported a 32.5% year-on-year decline in its standalone net profit to ₹6,546 crore.
  • The company’s gross refining margin (GRM) fell to $5.7 a barrel compared to $6.3 a barrel just three months ago.
  • The share price of RIL has shot up 87% since the beginning of the current fiscal year.
India's most valued company, Mukesh Ambani-owned Reliance Industries (RIL), reported a 32.5% year-on-year decline in its standalone net profit to ₹6,546 crore. The overall revenue declined 32.7% year-on-year to ₹61,246 crore during the same period. The gross refining margin (GRM) fell to $5.7 a barrel compared to $6.3 a barrel just three months ago.

July to September 2020AmountGrowth
Revenue₹61,246 crore-32.7%
Net profit₹6,546 crore-32.5%


Nearly a third of RIL’s profit is shaved off by the dent in refining

The revenue from nearly all its segments from petrochemicals to refining contracted during the quarter. And, Refining and petrochemicals, which together make for over three-fourth of the company's revenue was a major hit.
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Nearly a third of RIL’s profit is shaved off by the dent in refining

Jio and Reliance Retail continue to be the shining star in RIL's portfolio — Jio recorded a 31% y-o-y growth and Retail was up 42% ⁠— but these weren’t good enough to make up for the dent in refining.

SegmentRevenue growth (July-Sep 2020)
Petrochemicals-22%
Refining-34.80%
Oil and Gas-83.80%
Digital Services (Jio)31.4%
Retail42%


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The share price of RIL has shot up 87% since the beginning of the current fiscal year.

Nearly a third of RIL’s profit is shaved off by the dent in refining

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