RIL GDRs plunge 6% in London trading post Q1 results

The global depository receipts (GDRs) of Reliance Industries Ltd (RIL) fell over 6 per cent in London trading following the oil-to-telecom major's June quarter results. The RIL GDRs are traded on London Stock Exchange. At 8.22 pm IST, the GDR were trading at $62.30, down 6.46 per cent, as per the exchange website. To be sure, shares of Reliance Industries saw selling in the domestic market earlier today. The stock settled at Rs 2,536.20 on BSE, down 2.57 per cent. RIL results came in post market hours.

Reliance Industries said its profit (attributable to the owners) for the quarter stood at Rs 16,011 crore compared with Rs 17,955 crore in the year-ago quarter, down 10.82 per cent YoY. The numbers were dragged by O2C segment print, which was weak due to a sharp fall in fuel cracks from exceptionally high levels in Q1FY23. The profit growth figure for Q1 was in line with analyst estimates of 8-17 per cent drop.

Mukesh Ambani-led company said its consolidated revenue from operations declined 5.31  per cent YoY to Rs 2,10,831 crore from Rs 2,22,664 crore in the same quarter last year. Analysts were expecting a 2-8 per cent YoY drop in sales for the Mumbai-headquartered company.

Ebitda for the quarter rose 5.1 per cent YoY  to Rs 41,982 crore ($ 5.1 billion). Ebitda growth, RIL said, was led by consumer and upstream businesses, which offset decline in O2C earnings. O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in Q1FY23.

"Higher subscriber base and customer engagement led revenue and profitability growth for Digital Services. Retail earnings reflect expanded footprint and improved profitability with operating leverage. Higher production and realisations contributed to growth in Oil & Gas Ebitda," RIL said.

RIL said its depreciation for the quarter jumped 31.7 per cent YoY to Rs 11,775 crore ($ 1.4 billion) due to expanded asset
base across all the businesses and higher network utilization in Digital Services business. Finance costs was up 46 per cent YoY at Rs 5,837 crore ($ 711 million), primarily due to higher interest rates and loan balances.