India Reliance’s Q1 petchem revenue down 33%

Reliance Industries’ revenue from the petrochemicals business for its fiscal first quarter ending June 30 fell 33% on-year to INR252 billion ($3.4 billion), the Indian conglomerate said in a press release.

The producer’s earnings before interest, tax, depreciation and amortisation (EBITDA) from the segment, meanwhile, was down 49.7% at INR44.3 billion ($590 million) while the EBITDA margins fell 17.6% from 23.4% in the same period last year.

Reliance attributed the weaker business performance to lower prices due to disruptions in local and regional markets amid the COVID-19 pandemic.

Polyester chain margins declined to $540/ton from $668/ton a year earlier due to a fall in PX and PTA margins. Polymer chain margins, meanwhile, improved to $500/ton from $471/ton as naphtha cracking economics improved due to the sharp fall in feedstock prices.

As its operating rate remained above 90%, Reliance inverted its business model from 20% exports and 80% domestic to 80% exports and 20% domestic within the first 10 days of the lockdown.

The group added that it increased focus on the health and hygiene segment, food and beverage packaging and agricultural demand-led products such as special melt blown PP to support domestic N95 mask and PPE (personal protective equipment) production.