<p>Reliance Industries Limited (RIL) on Friday announced 11 per cent year-on-year drop in its net profit for the first quarter of the current financial year due to weak performance of oil-to-chemical (O2C) business, higher finance cost and increased depreciation.</p>.<p>The company’s net profit dipped to Rs 16,011 crore in April-June 2023 quarter as compared to Rs 17,955 crore recorded in the same period last year.</p>.<p>RIL said its finance costs surged 46 per cent year-on-year to Rs 5,837 crore primarily due to higher interest rates and loan balances. Depreciation increased by 31.7 per cent to Rs 11,775 crore due to expanded asset base across all the businesses and higher network utilisation in Digital Services business, it said.</p>.<p>The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) from oil refining and petrochemicals business dipped by 23.2 per cent to Rs 15,271 crore during the first quarter of the current fiscal.</p>.<p>Commenting on the results, RIL chairman and managing director Mukesh Ambani said, “O2C business delivered a resilient performance despite continuing global macro headwinds.”</p>.<p><b>Also Read | <a href="https://www.deccanherald.com/business/business-news/reliance-jio-q1-net-profit-rises-121-to-rs-4863-crore-1239328.html">Reliance Jio Q1 net profit rises 12.1% to Rs 4,863 crore</a></b></p>.<p>“Commencement of MJ field operations during the quarter will enhance India’s energy security, with total production from KGD6 block rising to 30 MMSCMD in the coming months,” he added.</p>.<p>RIL’s gross revenue dropped by 4.7 per cent year-on-year to Rs 231,132 crore ($28.2 billion) in April-June quarter, due to sharp decline in O2C revenues with 31 per cent fall in crude oil prices.</p>.<p>However, this is partially offset by continued growth in consumer businesses and increase in volumes from O2C and Oil & Gas business, RIL said in a statement.</p>.<p>EBITDA increased by 5.1 per cent year-on-year to Rs 41,982 crore ($ 5.1 billion). EBITDA growth was led by consumer and upstream businesses, which offset decline in O2C earnings.</p>.<p>“O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in 1Q FY23,” RIL said.</p>
<p>Reliance Industries Limited (RIL) on Friday announced 11 per cent year-on-year drop in its net profit for the first quarter of the current financial year due to weak performance of oil-to-chemical (O2C) business, higher finance cost and increased depreciation.</p>.<p>The company’s net profit dipped to Rs 16,011 crore in April-June 2023 quarter as compared to Rs 17,955 crore recorded in the same period last year.</p>.<p>RIL said its finance costs surged 46 per cent year-on-year to Rs 5,837 crore primarily due to higher interest rates and loan balances. Depreciation increased by 31.7 per cent to Rs 11,775 crore due to expanded asset base across all the businesses and higher network utilisation in Digital Services business, it said.</p>.<p>The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) from oil refining and petrochemicals business dipped by 23.2 per cent to Rs 15,271 crore during the first quarter of the current fiscal.</p>.<p>Commenting on the results, RIL chairman and managing director Mukesh Ambani said, “O2C business delivered a resilient performance despite continuing global macro headwinds.”</p>.<p><b>Also Read | <a href="https://www.deccanherald.com/business/business-news/reliance-jio-q1-net-profit-rises-121-to-rs-4863-crore-1239328.html">Reliance Jio Q1 net profit rises 12.1% to Rs 4,863 crore</a></b></p>.<p>“Commencement of MJ field operations during the quarter will enhance India’s energy security, with total production from KGD6 block rising to 30 MMSCMD in the coming months,” he added.</p>.<p>RIL’s gross revenue dropped by 4.7 per cent year-on-year to Rs 231,132 crore ($28.2 billion) in April-June quarter, due to sharp decline in O2C revenues with 31 per cent fall in crude oil prices.</p>.<p>However, this is partially offset by continued growth in consumer businesses and increase in volumes from O2C and Oil & Gas business, RIL said in a statement.</p>.<p>EBITDA increased by 5.1 per cent year-on-year to Rs 41,982 crore ($ 5.1 billion). EBITDA growth was led by consumer and upstream businesses, which offset decline in O2C earnings.</p>.<p>“O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in 1Q FY23,” RIL said.</p>