Reliance Industries Ltd announced its O2C Business segment results for the second quarter ended Sept 30, 2022.
Q2 Results- QoQ
The segment’s EBIDTA dropped 39.8% to Rs 119.68 billion for the period ended Sept 30, 2022 as against EBIDTA of Rs 198.88 billion for the previous quarter due to weak margins.
Net sales decreased 1.26% to Rs 1,596.71 billion during the period ended Sept 30, 2022 as compared to Rs 1,617.15 billion during the previous quarter.
“in this quarter we also have the production meant for sale was lowered by 3.6% on a year-onyear basis, given the planned turnarounds in the refinery unit. on the Q-o-Q, the explanation for Q-o-Q is all about margins, lower fuel margins, lower downstream margins, and of course SAED remains a common factor
for explanation for both year-on-year as well as quarter on quarter,” the company said on weak margins & sales for Q2 in an analyst call.
Q2 Results- YoY
The segment reported 5.9% decline in EBIDTA to Rs 119.68 billion for the period ended Sept 30, 2022 as against EBIDTA of Rs 127.2 billion for the prior-year quarter.
Net sales increased 32.5% to Rs 1,596.71 billion during the period ended Sept 30, 2022 as compared to Rs 1,204.75 billion during the prior-year quarter.
On weak margins, the company said “polymer deltas anywhere down on a quarter-on-quarter basis between 12% and 26% – PP, PE, PVC all of them. And the point being that Polymer prices were lower between 17% and 30%. And that prices on an absolute price softness were way beyond the input price, which is naphtha, which was down 19% on a Q-o-Q that’s essentially affecting margins.”
“On the polyester delta side chain that has been broadly flat as you can see $600 per ton and their waste saw margins on downstream was up 25%-30% but really offset by weak PTA and MEG margins,” it added.
On Paraxylene (PX), the company said “PX margins firmed as integrated players like us optimized PX production to capture higher gasoline margin.”
H1 Results- YoY
The segment reported 26.67% growth in EBIDTA to Rs 318.56 billion for the period ended Sept 30, 2022 as against EBIDTA of Rs 249.51 billion for the prior-year 1st half period.
Net sales increased 43.68% to Rs 3213.86 billion during the period ended Sept 30, 2022 as compared to Rs 2,236.87 billion during the the 6 Months period last year.
Reliance O2C Business, a segment of Reliance Industries Ltd is a leading player in the Indian chemical industry engaged in the manufacture and sale of petrochemicals.