March-qtr PBT falls 33% to ~9,223 crore

Mukesh Ambani-promoted Reliance Industries (RIL) reported a 33.5 per cent decline in its consolidated profit before tax (PBT) at ~9,223 crore for the quarter ended March 2020 (Q4) due to pressure in its petrochemicals business, higher expenses, and exceptional items.

Net profit, after exceptional items, was 38.7 per cent lower at ~6,348 crore against ~10,362 crore in the quarter ended March 2019.

The company incurred a one-time hit of ~4,245 crore due to the Covid-19-induced lockdown and inventory losses because of fluctuations in global oil prices. This loss has been categorised as an “exceptional item”, besides ~53 crore against liabilities relating to the erstwhile subsidiary GAPCO. It reversed ~31 crore for adjusted gross revenue dues of Reliance Jio, which it had taken for the quarter ended December 31, 2019.

Consolidated net sales for the quarter under review were ~1.36 trillion, 2.4 per cent lower than the ~1.39 trillion reported in the corresponding quarter a year ago.

RIL’S net profit and net sales, as well as the petrochemicals segment, missed analysts’ estimates.

In a Bloomberg poll, two analysts estimated a pre-tax profit of ~7,761 crore, and 12 analysts estimated net income (adjusted post tax profit) at ~10,406 crore. Eleven analysts estimated revenue at ~1.38 trillion.

RIL reported a gross refining margin

(GRM) of $8.9 a barrel for Q4, higher than analyst expectations, which were below $8 per barrel. This compares to $8.2 a barrel reported in the same period a year ago. The company said revenue from the refining and marketing segment declined by 3.4 per cent during the quarter over last year to ~84,854 crore, while earnings before interest and tax increased by 28.2 per cent yearon-year to ~5,706 crore with higher throughput and better GRMS.