NEW DELHI: Reliance Industries (RIL) on Friday announced a 15.05 per cent year-on-year (YoY) drop in consolidated net profit at Rs 9,567 crore for the quarter ended September 30, primarily due to a weak oil business struggling with Covid-19 led disruptions. The company had posted a net profit of Rs 11,262 crore in the corresponding period last year.
The consolidated revenue of the refining-to-retail conglomerate shrank 24.25 per cent to Rs 1.16 lakh crore as against Rs 1.53 lakh crore a year ago. The Mumbai-headquartered company reported a 36 per cent dip in revenue from its refining business on an annual basis.
Revenue from petrochemical business fell by 23 per cent as refining margins continued to fall and demand for fuel remained low. Its gross refining margin-the profit earned on each barrel of crude oil processed-slipped to $5.7 per barrel, lower than the $6.3 in the previous quarter and the $9.4 a year earlier.
Other verticals such as telecom and retail, however, offered a cushion to mitigate the impact on the oil vertical. RIL’s telecom arm Jio Platforms posted a nearly three-fold jump in net profit at Rs 2,844 crore as against a profit of Rs 990 crore in the corresponding period last year. Reliance Jio has raised more than $20 billion since April, with about half coming from Facebook and Google. Its revenue from operations rose 33 per cent to Rs 17,481 crore.
The retail division, that sells everything from grocery to apparel, suffered a 4.9 per cent drop in revenue, but the decline was an improvement over the 17 per cent fall recorded in the previous quarter. “Domestic demand has sharply recovered across our O2C business and is now near pre-Covid level for most products.
Retail business activity has normalised with strong growth in key consumption baskets as lockdowns ease across the country. With large capital raises across Jio and Retail business, we have welcomed several strategic and financial investors,” said RIL CMD Mukesh Ambani.
Karur Vysya Bank net profit up 81%
Karur Vysya Bank (KVB) on Friday reported an 81.4 per cent jump in its net profit at Rs 114.89 crore in the second quarter of FY 2020-21, helped by lower provisioning for bad loans. The bank had posted a net profit of Rs 63.33 crore in the corresponding quarter a year ago. Total income though fell to Rs 1,666.26 crore in the July-September period of FY21 as against Rs 1,815.24 crore in the same quarter of 2019-20, it said in a regulatory filing Interest income was down 9.3 per cent at Rs 1,394.70 crore from Rs 1,537.51 crore, but the bank recorded better asset quality with the gross NPAs falling to 7.93 per cent.
DLF Q2 profit dives 48% to Rs 232.14 cr
Realty major DLF on Friday reported a 48 per cent decline in its consolidated net profit at Rs 232.14 crore for the quarter ended September. Its net profit had stood at Rs 445.83 crore in the year-ago period Total income fell to Rs 1,723.09 crore from Rs 1,940.05 crore in the corresponding period of the previous year. According to the firm, it is taking steps to start the process of getting the proposed rental business Real Estate Investment Trust ready. “Covid-19 has impacted the economy and the market sentiment in the short term. We remain optimistic about... returning to normalcy,” DLF said in a statement.
JSPL Q2 loss widens to Rs 706 crore
Jindal Steel and Power Ltd on Friday said its total loss on a consolidated basis widened to Rs 706.49 crore for the quarter to September 2020. Its total consolidated loss was Rs 399.31 crore in the corresponding year-ago period, the company said in a filing to BSE. The Total income of the firm on a consolidated basis in July-September increased to Rs 9,137.43 crore from Rs 7,688.62 crore a year ago. In its statement, JSPL said that on a standalone basis, it has reported its highest ever steel production volumes (including pig iron) at 1.84 million tonnes and sales of 1.93 million tonnes during the period.
