The taxes, levied mid-last 12 months, halted the momentum in Reliance’s oil-to-chemical enterprise constructed on low cost Russian crude.
Reliance Industries Ltd on Friday reported a bigger-than-expected drop in quarterly revenue as India’s largest firm by market valuation took a success from the federal government’s windfall tax on gasoline exports.
The taxes had been levied on exports of petrol, diesel and aviation fuels halfway final 12 months, halting the momentum in Reliance’s oil-to-chemical (O2C) enterprise constructed on low cost Russian crude and excessive demand for transportation fuels.
The downstream chemical merchandise had skilled margin stress from extra provide and comparatively weak regional demand throughout the quarter, the Mukesh Ambani-led conglomerate mentioned.
Its consolidated revenue fell almost 15 p.c to 157.92 billion rupees ($1.95bn) within the third quarter, with the windfall tax consuming into that by 18.98 billion rupees ($233.3m).
Analysts on common had anticipated revenue to drop to 162.58 billion rupees ($1.99bn), in response to Refinitiv IBES.
Greater depreciation and finance prices pushed up Reliance’s whole bills by almost 16 p.c to 2.01 trillion rupees, an even bigger leap than the corporate’s income development of 15.3 p.c to 2.21 trillion rupees ($24.7bn).
The corporate additionally mentioned it was on observe to hit manufacturing of 30 million customary cubic meters of gasoline per day subsequent monetary 12 months after the commissioning of its deepwater MJ gasoline condensate area within the Bay of Bengal KG-D6 block.
It expects gasoline worth realisations to stay excessive within the close to time period, the corporate mentioned in a name.
Reliance, which has diversified its companies over time to retail, telecom and, just lately, inexperienced power, mentioned it permitted elevating as much as 200 billion rupees ($2.4bn) through non-convertible debentures. Internet debt as of December 31 stood at 1.10 trillion rupees ($13.5bn).
Whereas its O2C enterprise remained below stress, Reliance’s telecom arm reported a 28.3 p.c rise in third-quarter revenue. Its common income per person – a key efficiency metric for telecoms – rose 17.5 p.c year-over-year.
The retail section’s quarterly income grew 17.2 p.c to a document 676.23 billion rupees ($8.3bn).