Reliance Industries Ltd, India’s most respected firm, on Friday posted an almost flat quarterly revenue as export tax on refined gas and weak refining margins impacted efficiency in its core oil-to-chemical enterprise.
The Mukesh Ambani-led conglomerate mentioned consolidated revenue stood at 136.56 billion Indian rupees ($1.65 billion) for the second quarter ended September 30, in comparison with 136.8 billion rupees a 12 months in the past.
“The efficiency of our O2C enterprise displays weak demand and weak margin setting in downstream chemical merchandise,” Ambani, Reliance Chairman and Managing Director, mentioned in a press release.
The oil-to-chemical (O2C) enterprise, which noticed a stellar efficiency over the previous few quarters on excessive demand for the transportation gas, helped by cheaper Russian crude, helped refinery margins cool from a file excessive within the quarter.
A serious setback got here within the type of an surprising tax on the export of gasoline, diesel and aviation gas imposed by the Indian authorities.
Reliance mentioned export responsibility adversely impacted earnings of Rs 40.39 billion for the quarter.
Earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) for the O2C section fell 5.9% year-on-year to Rs 119.68 billion.
Reliance additionally shut down a crude distillation unit and a gasoline-producing fluid catalytic cracker in Gujarat’s Jamnagar in September for common upkeep.
The retail enterprise, which suffered essentially the most within the coronavirus-led lockdown, noticed a 42.9% rise in income within the quarter as footfalls continued to rise, whereas telecom unit Reliance Jio reported a 28% rise in revenue.