New Delhi: (RIL), India’s biggest company by market value, reported an almost flat profit in the September quarter, as the windfall tax and lower petrochemicals margins more than offset gains from the upstream, retail and digital businesses.

The company also announced the demerger of its financial services business.

The oil-to-retail-to-telecom conglomerate reported a ₹15,512 crore net profit in the quarter, almost unchanged from ₹15,479 a year earlier and down 20% from ₹19,443 crore in the June quarter.

Adjusted for ownership in subsidiaries, net profit for the quarter attributable to shareholders was ₹13,656 crore, down marginally from ₹13,680 crore a year earlier and missing the average estimate of ₹14,460 crore by analysts surveyed by Bloomberg.

The adjusted net profit was ₹17,955 crore in the first quarter of this fiscal. Revenue surged 32.4% from a year earlier to ₹2.53 lakh crore, while operating profit, or consolidated ebitda, rose 14.5% from a year ago to ₹34,663 crore, underlining the compression in margins.

“Performance of our O2C (oil-to-chemicals) business reflect subdued demand and weak margin environment across downstream chemical products,” said

Chairman Mukesh Ambani,

Ahead of the earnings announcement, RIL’s shares closed at ₹2,471.95, down 1.2%, for a market capitalization of ₹16.72 lakh crore. The BSE Sensex ended marginally up.

The company announced a demerger of its wholly owned financial services subsidiary

Strategic Investments Ltd (RSIL), which will be renamed Jio Financial Services Ltd (JFSL) and listed.

RIL’s shareholders will receive one equity share of JFSL of face value Rs 10 for one fully paid-up equity share held in RIL.

The company also announced the engineering, procurement and construction (EPC) and infrastructure undertaking of wholly owned subsidiary Reliance Projects and Property Management Services Ltd (RPPMSL) will be absorbed by RIL. “This demerger, together with the existing EPC team in RIL, creates a focused EPC undertaking in RIL to cater to the needs of the group,” the company said in a separate statement.

Jio Platforms

Jio Platforms Ltd (JPL), which houses the company’s telecom business, reported a 27% rise in net profit in the quarter, driven by lower spectrum usage charges (SUC), a surge in customer additions and higher data consumption.

JPL’s consolidated net profit rose to Rs 4,729 from Rs 3,728 crore in the year ago, the company said on Friday. Net profit was below street estimates of around Rs 4,811 crore. Revenue rose nearly 23% year-on-year to Rs 28,506 crore.

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By Dipak

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