RIL's revenue up 5.4% to ₹659,205 cr in FY20

The company has identified 'Financial services' as a separate business segment based on internal reorganisation of its business segments. RIL is engaged in financial services through its treasury investment activities, payment bank, consumer lending business, insurance broking business among others. Accordingly, the company has reported the performance of these activities as a separate business segment.

Exports (including deemed exports) from India were lower at ₹202,830 crore ($26.8 billion) as against ₹224,391 crore in the previous year. The decline in exports was primarily on account of lower realisation due to fall in crude oil prices, the company said in a press release.

Segment EBITDA increased by 3.2 per cent to ₹92,964 crore ($12.3 billion) from ₹90,084 crore in corresponding period of the previous year. The increase in Segment EBITDA was led by strong performance in consumer businesses which grew by 49.3 per cent year-on-year. Retail business benefitted from new store additions, strong footfalls and high LFL growth.

The outbreak of Coronavirus (COVID-19) pandemic globally and in India has caused significant disturbance and slowdown of economic activity. During this period, there has been significant volatility in oil prices, resulting in uncertainty and sharp reduction in oil prices. Through the quarter, oil prices declined 73 per cent impacting inventory valuation. In view of the above, the company has provided for non-cash inventory holding losses for the quarter. This has been disclosed as an Exceptional Item of ₹4,245 crore, net of tax (tax ₹899 crore) in the financial results.

Profit after tax (excluding exceptional item) was higher by 11.3 per cent at ₹44,324 crore ($5.9 billion) as against ₹39,837 crore in the previous year. Profit after tax (including exceptional item) was higher by 0.1 per cent at ₹39,880 crore ($5.3 billion) as against ₹39,837 crore in the previous year.

"In spite of the Covid-19 crisis and the lockdowns, the due-diligence by Saudi Aramco for the planned investment in the O2C business is on track as both the parties are committed and actively engaged," the company added.

For the quarter ended March 31, 2020, RIL achieved revenue of ₹151,209 crore ($20.0 billion), a decrease of 2.5 per cent as compared to ₹155,151 crore in the corresponding period of the previous year. Decrease in revenue was primarily on account of 10.1 per cent decline in refining and petrochemicals business revenues.

Fibre2Fashion News Desk (RKS)