Reliance Industries Q2 net profit remains flat at Rs 13,656 crore; hit by weak refining margins

NEW DELHI: India’s most valuable company Reliance Industries on Friday reported a flat profit for the second quarter of the financial year 2022-23.
RIL’s consolidated net profit stood at Rs 13,656 crore in Q2 as against a profit of Rs 13,680 crore in same period last fiscal.
The Mukesh Ambani-led firm’s profits tumbled after its mainstay oil-to-chemical business was impacted by a fall in refinery margins and export tax on refined fuels.
In terms of quarterly numbers, RIL’s profit plunged about 24%.
The oil-to-chemical (O2C) business that witnessed a great run over the past few quarters on higher demand for transportation fuels, helped by cheap Russian crude, saw refinery margins cooling off from record highs in the quarter.
A bigger shock came in the form of windfall tax on exports of gasoline, diesel and aviation fuel levied by the government of India.
The export duty adversely impacted profit for the quarter by Rs 4,039 crore, Reliance said.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the O2C segment dropped 5.9% year-on-year to Rs 11,968 crore.
Reliance also shut a crude distillation unit and gasoline making fluid catalytic cracker at Jamnagar in Gujarat in September for usual maintenance.

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