Reliance Industries Ltd’s net profit for the second quarter dropped 0.2 per cent to ₹13,656 crore compared with ₹13,680 crore during the same period last year. On a sequential basis, its profit dropped 24 per cent from ₹17,955 crore in June quarter.

The company said that the Special Additional Excise duty on the export of transportation fuels from July 1 impacted on the profit for the quarter determined at ₹4,039 crore.

Revenue from operations advanced 34 per cent year-on-year to ₹2.32-lakh crore.

Mukesh Ambani, Chairman, RIL, said, “Performance of our O2C business reflects subdued demand and weak margin environment across downstream chemical products. Transportation fuel margins were better than last year but significantly lower sequentially. Segment performance was also impacted by the introduction of special additional excise duties during the quarter to ensure stable supply and lower volatility in the domestic market.”

Telecom biz

However, the telecom and retail businesses did better. Reliance Jio reported a 28.06 per cent year-on-year increase in net profit for the second quarter of fiscal 2023. Profits rose to ₹4,518 crore in the September quarter from ₹3,528 crore reported at the same time last year. Revenue from operations rose by 20.2 per cent year-on-year to ₹22,521 crore in the reporting quarter from a revenue ₹18,749 crore reported in the same time last year. 

“I am pleased with the record performance of our consumer businesses which continue to scale new milestones every quarter. We saw consistent net subscriber additions and higher engagement in Digital Services segment,” Ambani said.

Retail arm

Reliance Industries’ retail arm, Reliance Retail, has clocked a 42.9 per cent year-on-year growth in revenue at ₹64,920 crore in Q2 FY23. The company continues to be the second-highest revenue contributor for Reliance Industries.

Reliance Retail’s net profit for the quarter was at ₹2,305 crore, higher by 36 per cent. The number of total operational physical stores stood at 16,617 — up from 15,866. The company said it is the only Indian retailer with more than 50 million sq ft of retail space under operation. “Our retail business delivered record performance with a strong revival in footfalls, store additions, and digital integration. Reliance Retail continues to provide a compelling proposition of great shopping experience and superior value across consumption baskets and price points,” Ambani said.