Extraordinary gain: BP deal, other income boost RIL net profit by 31% to Rs 13,248 crore in Q1

Reliance Industries (RIL) on Thursday reported a 30.6% y-o-y growth in net profit to Rs 13,248 crore in the April-June quarter, largely driven by an exceptional gain and a lower tax payout. The bottomline got a boost of Rs 4,966 crore from an exceptional profit (net of taxes of Rs 1,508 crore) from the divestment of shares of Reliance BP Mobility Services and a lower tax liability. During the quarter, tax payout was lower by 71% y-o-y at Rs 923 crore and deferred tax gains of Rs 663 crore. The company also saw a 54% y-o-y growth in other income at Rs 4,388 crore.

Lockdowns across the world impacted demand across its key business verticals — petrochemicals, refining and retail. Prices of crude oil fell on lower demand impacting refining margins. Lockdowns in India impacted retail sales while high fixed costs eroded segmental profits.