The taxes, levied mid-last yr, 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 gas exports.
The taxes had been levied on exports of petrol, diesel and aviation fuels halfway final yr, 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 strain from extra provide and comparatively weak regional demand in the course of the quarter, the Mukesh Ambani-led conglomerate stated.
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 line with Refinitiv IBES.
Increased depreciation and finance prices pushed up Reliance’s whole bills by almost 16 p.c to 2.01 trillion rupees, an even bigger bounce than the corporate’s income progress of 15.3 p.c to 2.21 trillion rupees ($24.7bn).
The corporate additionally stated it was on observe to hit manufacturing of 30 million commonplace cubic meters of gasoline per day subsequent monetary yr after the commissioning of its deepwater MJ gasoline condensate subject within the Bay of Bengal KG-D6 block.
It expects gasoline worth realisations to stay excessive within the close to time period, the corporate stated in a name.
Reliance, which has diversified its companies through the years to retail, telecom and, not too long ago, inexperienced vitality, stated it accepted elevating as much as 200 billion rupees ($2.4bn) through non-convertible debentures. Web debt as of December 31 stood at 1.10 trillion rupees ($13.5bn).
Whereas its O2C enterprise remained below strain, Reliance’s telecom arm reported a 28.3 p.c rise in third-quarter revenue. Its common income per consumer – 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).