Reliance Industries Ltd. (RIL) has reported that for the quarter ended on 30 June, its net profit spiked a whopping 31 per cent to Rs. 13,233 crore as opposed to a net profit of Rs. 10,104 crore for the same period last year.
India’s most valuable conglomerate beat out analysts’ estimates of a net profit of Rs. 7,457 crore by a huge margin.
While the profits have risen from last year, the company reported significantly lower revenue due to the coronavirus’ impact on Indian and global retail.
RIL revealed a 44 per cent decline in revenue to Rs. 91,238 crore. Reliance’s retail arm, which is responsible for groceries, apparel and electronic, saw its EBITDA fall to nearly half to Rs. 1,083 crore from Rs. 2,060 crore for the corresponding period last year and the net profit stood at Rs. 431 crore.
“Consumer electronics and fashion and lifestyle businesses were hit particularly hard by the cessation of activity during the lockdown period as stores were closed for the most part of the quarter,” the company said in a statement.
However, the lowering of revenue was not enough to knock the conglomerate out of its path. Earnings saw a major boost after Britain oil company BP invested in Reliance’s fuel retailing venture.