Reliance Q2 net profit falls 5% on weak O2C business

NEW DELHI: Reliance Industries Ltd, India's most valuable company, on Monday reported a 5 per cent fall in the July-September quarter net profit as weak oil refining and petrochemical business hurt operational performance.

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Its consolidated net profit fell to Rs 16,563 crore or Rs 24.48 per share in July-September - the second quarter of the current fiscal - compared to Rs 17,394 crore or Rs 25.71 a share in the same period a year back, according to a company statement.

While retail and telecom businesses posted steady performance, the oil-to-chemical (O2C) business saw margins shrink on global oversupply due to China flooding the market with petroleum products it made from refining cheap Russian crude oil. This led to a fall in product margins.

The profit before tax (EBITDA) dropped 2 per cent to Rs 43,934 crore. The financial performance was also impacted by finance costs rising by 5 per cent to Rs 6,017 crore, primarily due to higher debt. Also, depreciation rose by 2.3 per cent.