Reliance Industries Limited (RIL) released their Q1 results on Friday reporting a 10.8% (YoY) decline in their net profits which dropped to ₹16,011 from ₹17,955 crore in the corresponding period last year. Post the announcement of Q1 results, the global depository receipts (GDRs) of RIL dipped by over 6% in London Stock Exchange trading.
As per the website of the stock exchange, the GDR of Reliance Industries was trading at $62.30, down 6.46%. The stock movement on the London Exchange was similar to BSE as RIL shares witnessed selling on Friday and closed at ₹2,536.20, 2.57% down as the street estimates were expecting a plunge in net profit.
During the April to June quarter of the current fiscal year, the total revenue generated from operations amounted to ₹231,132 crore, exhibiting a decrease of 4.6% in comparison to the revenue of ₹242,529 crore recorded during the corresponding period in the previous year.
Subdued growth in O2C business
The decline in both revenue and consolidated net profit can be attributed to the subdued growth in the oil-to-chemicals (O2C) business, which was primarily influenced by the prevailing weakness in global crude oil prices.
Specifically, the diversified conglomerate’s O2C division experienced a significant decline of 17.7% in revenue, amounting to ₹1,33,031 crore during the quarter under review, in contrast to the revenue of ₹1,61,715 crore achieved during the same quarter last year.
“Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments,” said Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries.
“The process of demerger of the financial services business – Jio Financial Services Limited – is on track with key approvals in place. I firmly believe that Jio Financial Services is uniquely positioned to foster financial inclusion in India,” said Ambani.
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Updated: 21 Jul 2023, 09:48 PM IST
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