RIL’s Q4 net profits down 37.2%; misses estimates to carve out O2C business

Reliance Industries (RIL), the country’s most valuable company by market cap, reported a 37.2% fall in its net profits after including exceptional items at Rs 6,546 crore for the quarter-ended March. Revenues for Q4FY20 fell 2.5% to Rs 1.51 lakh crore, primarily on account of a 10.1% decline in refining and petrochemicals business revenues. The sharp fall of 20.5% year-on-year in average Brent oil price led to lower product price realisation across the hydrocarbon chain. This was partially offset by continuing growth in consumer businesses, even amidst the operational issues posed by the pandemic, RIL said.

The company, however, has put in place a blueprint for the new Reliance Industries, as it looks at carving out the oil-to-chemicals portfolio out through a slump sale. The new RIL will have a new business vertical – financial services – which will house the group’s consumer lending, insurance broking and payments business.