RIL says it took just 10 days to flip the petchem business model to 80% exports
- RIL’s overall exports declined 34.8% to ₹ 32,681 crore compared to the corresponding period of the previous year.
- The company said that the fall in overseas revenue was “partially offset by increase in export volumes of petrochemicals and refining products.”
- Check out the latest news and updates on Business Insider.
AdvertisementPetrochemicals segment makes for about quarter of Reliance Industries’ revenue in the last financial year ending March 2020. Traditionally, 80% of its revenue came from India and the rest from exports.
However, the coronavirus pandemic and the subsequent lockdown brought business at home to a grinding halt. “RIL inverted its business model from 20%/80% (exports/domestic) to 80%/20% within the first 10 days of the lockdown, including exports from sites typically serving only domestic markets,” the company said in its first quarterly report for the current financial year.
Although RIL’s overall exports declined 34.8% to ₹ 32,681 crore compared to the corresponding period of the previous year. But that was only because the global prices had fallen. However, if it had tried to sell the same in India, the sales could have been much lesser because customers had shut shop due to the lockdown. That was Ambani’s trade-off in the quick pivot.
*EBITDA stands for earnings before interest, tax, depreciation and amortisation
|April to June 2019
|₹ 37,611 crore
|₹ 8,810 crore
The company said that the fall in overseas revenue was “partially offset by increase in export volumes of petrochemicals and refining products.”
“RIL optimized its refining operations to provide feedstock to Petrochemicals while meeting other supply commitments. RIL used flexibility in its refining configuration to swing significant production of ATF into Diesel and other products as ATF demand was severely impacted due to air travel restrictions,” the company said in a statement.
SEE ALSO: Jio continues to be Reliance Industries’ beacon with 182% jump in profit
RIL has a sobering quarter— if not for Jio and BP stake sale it would have been much worse
Popular on BI
- RANKED: The world's 20 strongest militaries
- I quit buying from Amazon 4 years ago. I get better deals on products elsewhere but still have to use their services.
- Gen Z faces more pressure at work than previous generations because technology has eliminated work-life boundaries, a psychology professor says
- Sensex, Nifty volatile in early trade amid mixed global trends
- Lord Buddha's holy relics make sacred journey to Thailand from India
- Financial Independence, Retire Early (FIRE) Movement
- Yum restaurants India exits Devyani International; sells entire stake of ₹871 crore
- Govt eases FDI norms in space sector; 100% in making components for satellites