Reliance Industries Ltd.‘s quarterly profit declined as its refining unit saw lower volumes and sales, while its retail arm struggled due to store shutdowns amid the second wave of Covid-19.
The Mukesh Ambani-led conglomerate’s profit fell 7% sequentially to Rs 12,273 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 11,889.8-crore consensus estimate of analysts tracked by Bloomberg.
Net sales fell 6% over the previous quarter to Rs 1.39 lakh crore—lower than the estimated Rs 1.47 lakh crore.
Operating profit rose 3.6% to Rs 26,602 crore.
Operating margin widened to 19.7% from 17.8% earlier.
Reliance said the second wave of Covid-19 resulted in a drop in domestic demand. The company tried to absorb some of that impact through increased exports.
Growth in key polymer spreads supported the petrochemicals segment. Spreads of polyethylene, polypropylene and PVC naphtha, which rose to multi-quarter highs in the three months through March, have since softened.
Benchmark Singapore GRMs rose 16.7% sequentially to $2.1 per barrel in the quarter June. Brent crude prices averaged $69.1 per barrel during April-June—rising 13% over the last quarter. Petrol, diesel, and jet fuel spreads have jumped 44%, 13%, and 36% on a sequential basis in the first quarter of the ongoing fiscal.
Net profit of Jio Platforms Ltd., the holding company for the group’s digital ventures and telecom unit, rose 4% over the previous quarter to Rs 3,651 crore.
Reliance Jio Infocomm Ltd.’s average revenue per user remained flat at Rs 138.4 from the previous quarter. The company’s total customer base as on June 30 was 44 crore, having added 4.2 crore during the quarter.
Reliance Retail’s revenue from operations fell 18.7% sequentially during the quarter.
The company said that operating environment was challenging during the quarter as stores were shut due to various local lockdowns across the country.
“After second week of June, there were sporadic signs of easing with continued restrictions varying across geographies,” it said. “Retail stores and digital commerce could sell only essentials for the most part of the quarter.”