BENGALURU (Reuters) – Reliance Industries Ltd’s <RELI.NS> quarterly profit fell for the first time in three years as its dominant energy business suffered inventory losses due to a slump in crude prices amid the coronavirus outbreak.
The company, which operates the world’s largest oil refining complex, said on Thursday it wrote down 42.45 billion rupees ($565 million).
As a result, consolidated profit of the conglomerate, led by Asia’s richest man Mukesh Ambani, plunged 39% to 63.48 billion rupees ($845 million) in the three months ended March 31, from a year earlier.
Analysts on average had expected 105.20 billion rupees, according to Refinitiv IBES data.
Revenue from operations fell to 1.39 trillion rupees from 1.43 trillion rupees a year earlier.
In a filing with stock exchanges, Reliance said it was accounting for “inventory holding losses in the energy businesses due to the dramatic drop in oil prices accompanied with unprecedented demand destruction due to COVID-19.”
Meanwhile, Reliance’s telecom business Jio continued to see double-digit growth in revenue as it added more subscribers.
Its retail business, which operates 10,000 stores selling groceries, consumer electronics and apparel, reported a modest 4% rise in revenue.
(Reporting by Sachin Ravikumar; Editing by Arun Koyyur)