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.
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
|Petrochemical Segment||April-June 2020||April to June 2019||Growth%|
|Segment Revenue||₹25,192 crore||₹ 37,611 crore||-33%|
|Segment EBITDA||₹4,430||₹ 8,810 crore||-49.70%|
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
- Argentine Football legend Diego Maradona, 60, dead
- Bengal Minister Hakim likely to take part in Covaxin Phase-3 trial
- Headspace to offer unlimited access to students from IIT and IIM in India for six months
- Cyclone Nivar likely to cross coast tonight, TN CM declares one more day holiday
- Delhi's air quality deteriorates to 'severe' category due to slow winds