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<ul><li><strong>RIL’s overall exports declined 34.8% to ₹ 32,681 crore compared to the corresponding period of the previous year. <br /></strong></li><li><strong>The company said that the fall in overseas revenue was “partially offset by increase in export volumes of petrochemicals and refining products.”</strong></li><li><a href="https://www.businessinsider.in/"><strong>Check out the latest news and updates on Business Insider.</strong></a></li></ul>Petrochemicals segment makes for about quarter of Reliance Industries’ revenue in the last financial year ending March 2020. Traditionally, 80% of its revenue came from India and the rest from exports. <br /><br />However, the coronavirus pandemic and the subsequent lockdown brought business at home to a grinding halt. “RIL inverted its business model from 20%/80% (exports/domestic) to 80%/20% within the first 10 days of the lockdown, including exports from sites typically serving only domestic markets,” the company said in its first quarterly report for the current financial year. <br /><br />          <div type="image" title="RIL revenue mix." msid="77266378" hostid="261"></div><br />Although RIL’s overall exports declined 34.8% to ₹ 32,681 crore compared to the corresponding period of the previous year. But that was only because the global prices had fallen. However, if it had tried to sell the same in India, the sales could have been much lesser because customers had shut shop due to the lockdown. That was Ambani’s trade-off in the quick pivot. <br /><br /><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Petrochemical Segment<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April-June 2020<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">April to June 2019<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Growth%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment Revenue<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹25,192 crore<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 37,611 crore<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-33%<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment EBITDA<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,430<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 8,810 crore<br /><br /></td><td style="border-left:solid #000000 0.9960975000000001pt;border-right:solid #000000 0.9960975000000001pt;border-bottom:solid #000000 0.9960975000000001pt;border-top:solid #000000 0.9960975000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-49.70%<br /><br /></td></tr></tbody></table><em>*EBITDA stands for earnings before interest, tax, depreciation and amortisation</em><br /><br />The company said that the fall in overseas revenue was “partially offset by increase in export volumes of petrochemicals and refining products.”<br /><br />“RIL optimized its refining operations to provide feedstock to Petrochemicals while meeting other supply commitments. RIL used flexibility in its refining configuration to swing significant production of ATF into Diesel and other products as ATF demand was severely impacted due to air travel restrictions,” the company said in a statement.<br /><br /><strong>SEE ALSO:<a href="https://www.businessinsider.in/business/telecom/news/jio-continues-to-be-reliance-industries-beacon-with-182-jump-in-profit/articleshow/77265976.cms" data-type="tilCustomLink" style=""> Jio continues to be Reliance Industries’ beacon with 182% jump in profit</a><br /></strong><a href="https://www.businessinsider.in/business/corporates/news/ril-has-a-sobering-quarter-if-not-for-jio-and-bp-stake-sale-it-would-have-been-much-worse/articleshow/77264366.cms" data-type="tilCustomLink"><strong><br />RIL has a sobering quarter⁠— if not for Jio and BP stake sale it would have been much worse</strong></a><br />

RIL says it took just 10 days to flip the petchem business model to 80% exports

<ul><li><strong>India's most-valued company has seen sharp fall in revenue, way below street estimates.</strong></li><li><strong>If not for one-time gains worth nearly ₹5,000 crore, RIL's profit would have been lesser than it was. </strong></li><li><strong>Refining revenue more than halved, petrochemicals revenue fell by a third compared to the same time last year.</strong></li><li><strong><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </strong></li></ul>India's most-valued company Reliance Industries (RIL), owned by the country's richest man Mukesh Ambani, has seen sharp fall in financial performance. "The severe demand destruction due to global lockdowns impacted our hydrocarbons business but the flexibility in our operations enabled us to operate at near normal levels and deliver industryleading results," Chairman Ambani said. <br /><br /><table style="width: 287pt;"> </colgroup>   <tbody><tr> <td class="xl63" style="height:15.0pt;width:147pt"><strong>April-June 2020</strong></td> <td class="xl63" style="border-left-width: initial; border-left-style: none; width: 92pt;"><strong>Amount</strong></td> <td class="xl63" style="border-left-width: initial; border-left-style: none; width: 48pt;"><strong>Growth</strong></td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Revenue</td> <td class="xl64" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹52,263 crore</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-46%</td> </tr> <tr> <td class="xl63" style="height: 15pt; border-top-width: initial; border-top-style: none;">Net profit</td> <td class="xl64" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">₹9,753 crore</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">7.90%</td> </tr></tbody></table><br />Refining and petrochemicals, which together make for over three-fourth's of the company's revenue saw a sharp decline in performance. Refining revenue more than halved, petrochemicals revenue fell by a third compared to the same time last year as global demand crashed and so did crude oil prices. <br /><br /><table style="width: 333pt;"> </colgroup>   <tbody><tr> <td class="xl65" style="height:15.0pt;width:147pt"><strong>Segment</strong></td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 92pt;"><strong>Revenue</strong></td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 94pt;"><strong>Operating profit</strong></td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Petrochemicals</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-33%</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-55%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Refining</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-54%</td> <td class="xl67" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-35.71%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Retail</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-17%</td> <td class="xl67" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-59.50%</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Digital Services (Jio)</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">34%</td> <td class="xl67" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">50.80%</td> </tr></tbody></table><br />Gross refining margin fell to $6.3 per barrel, this is the lowest for the company in at least ten quarters. <br /><br />                  <div type="image" title="ril grm" msid="77265017" hostid="261" caption="&amp;lt;p&amp;gt;RIL&amp;#39;s gross refining margin in the April-June 2020 period has been the lowest in at least ten preceding quarters.&amp;lt;/p&amp;gt;"></div><br />Reliance Jio, the company's telecom and digital business, was the only exiciting part where the revenue grew by a third and the profit by nearly three times. The user base expanded to 398.3 million at the end of June 2020 and the average revenue per user went up to ₹140.3.<br /><br />              <div type="image" title="jio." msid="77265703" hostid="261" caption="&amp;lt;p&amp;gt;Reliance Jio has added nearly 100 million new subscribers in the last 15 months.&amp;lt;/p&amp;gt;"></div><br />The retail business, which made for a quarter of the company's revenue, saw its profit fall by 59% as a majority of its over 11,000 stores were locked down due to the pandemic. However, the silver lining in the retail segment was the rise in orders for groceries and the improving potential for the e-commerce unit JioMart.<br /><br /><div type="Article" hostid="261" msid="77265437" title="Reliance Retail’s profit more than halves but Mukesh Ambani puts the spotlight on surging orders on JioMart" mstype="2" mssubtype="0"></div><br />This will be a sobering moment for Reliance shareholders as the stock has seen a 40% rally this year so far while most of the share market slid deep into the red. <br /><br />        <div type="image" title="RIL Share price" msid="77265627" hostid="261" caption="&amp;lt;p&amp;gt;RIL share price has gained over 40% this year so far but the earnings for the April-June period have been disappointing.&amp;lt;/p&amp;gt;"></div><br /><span class="c-message_attachment__title"><strong>SEE ALSO:</strong><br /><span class="c-message_attachment__title"><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/jio-continues-to-be-reliance-industries-beacon-with-182-jump-in-profit/articleshow/77265976.cms">Jio continues to be Reliance Industries’ beacon with 182% jump in profit</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/jio-continues-to-be-reliance-industries-beacon-with-182-jump-in-profit/articleshow/77265976.cms"></a></span><br /><br /><span class="c-message_attachment__title"><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/ril-says-it-took-just-10-days-to-flip-the-petrochemical-business-to-80-exports/articleshow/77266227.cms?upcache=2">RIL says it took just 10 days to flip the petchem business model to 80% exports</a></span></span><br />

RIL has a sobering quarter⁠— if not for Jio and stake sale to BP it would have been much worse

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RIL says it took just 10 days to flip the petchem business model to 80% exports

Navdeep Yadav

RIL has a sobering quarter⁠— if not for Jio and stake sale to BP it would have been much worse

Sriram Iyer

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