Initially, RIL reports a 37% drop in fourth quarter earnings to Rs 6,546cr

Mumbai: Industries fell 37% to Rs 6,546 crore in the fourth quarter of fiscal year 2020, when the coronavirus outbreak slowed down the Indian economy. This is the first time in recent years that the country's largest private sector company reported a decline in earnings. Analysts forecast a high impact on the execution rate of e-tailer scans in the first quarter of fiscal year 2021 when mobility restrictions to control the spread of the virus peaked, accelerating consumption of transportation fuels.

Debt rose to Rs 3.36 lakh crore, but declared a dividend of Rs 6.5 per share despite trade disruptions caused by the health crisis. Cash increased to Rs 1.75 lakh crore, compared to Rs 1.53 lakh crore in the previous quarter.

It fell slightly 2.5% to Rs 1.51 lakh crore, compared to Rs 1.55 lakh crore the previous year, mainly due to lukewarm growth in refining and petrochemicals. However, operating profit increased 7.6% to Rs 25,886 million in the January-March quarter due to strong earnings from the digital services business ().

Despite huge challenges arising from the aftermath of the global pandemic, the company has once again delivered resilient performance for fiscal year 2020, RIL President said Mukesh Ambani . Our consumer companies further strengthened their leadership positions and recorded solid growth in all operating and financial parameters during the year. Operating profits from refining and petrochemicals, the two largest sources of revenue, decreased 28% and 43% to Rs 5,706 crore and Rs 4,553 crore. The segments faced uncertainties related to a drop in demand and prices. Oil prices decreased 73%, impacting inventory valuation. RIL said the company has provided non-cash inventory holding losses for the quarter and has included them as an exception item of Rs 4,245 crore in the financial statements.

The company's Jamnagar refinery, the world's largest, secured a price of $ 8.9 for each barrel of crude oil it processed, marginally lower than what it earned in the fourth quarter of fiscal 2019.

The operating profit from retail sales increased 20% to Rs 2,062 million rupees, while the operating profit from digital services (Jio) increased 54% to Rs 4,104 million rupees after rate increases in December and a increased data usage after force locking. Although the non-grocery business was impacted in March due to the closure, grocery stores remained open for extended hours during that period.

The operating profit of the media unit rose 473% to Rs 149 crore, while the oil and gas business went into operation lost . For the full fiscal year 2020, RIL's earnings remained stable at Rs 39.88 crore, while revenue increased 5.4% to Rs 6.59 crore.

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