Reliance net up 9%, planned shutdown at oil refinery mutes earnings

NEW DELHI: Reliance IndustriesLtd on Friday reported a 9 per cent rise in its December quarter net profit as a planned maintenance-induced weakness in oil business earnings was offset by stability in retail and telecom verticals.

The oil-to-retail-to-telecom conglomerate’s consolidated net profit of Rs 17,265 crore, or Rs 25.52 per share, in October-December - the third quarter of the current 2023-24 fiscal - was 9.3 per cent higher thanRs 15,792 crore, or Rs 23.19 a share, earning a year back, as per a statement.

Quarter-on-quarter, the profit was lower when compared to Rs 17,394 crore earnings in the preceding three months ended September 30.

Primarily the oil-to-chemicals (O2C) business, the main milch cow, saw subdued earnings on accounts of a planned maintenance and inspection shutdown, lasting up to seven weeks of key units in the giant refining complex in Jamnagar, which cut the run rate.

While quarterly EBITDA was up 16.7 per cent year-on-year to Rs 44,678 crore with growth across all businesses, the revenue from operations was almost flat at Rs 2.2 lakh crore. The firm helmed by billionaire Mukesh Ambani saw retail business seeing record footfalls leading to highest ever quarterly revenue and pre-tax profit (EBITDA). Telecom revenues soared as it outpaced competition in subscriber addition and higher data traffic.

The mainstay oil refining and petrochemicals business, called O2C, posted a 2.4 per cent fall in revenue and an EBITDA of Rs 14,064 crore, which was 1 per cent higher year-on-year but lower than Rs 16,281 cr of the preceding July-September quarter.

“Planned maintenance and inspection shutdown of CDU, FCCU, delayed coking and ROGC complex impacted yields and profitability. O2C EBITDA would have been higher on year-on-year and comparable on quarter-on-quarter basis if all major units were available during the quarter, the firm said.