The taxes, levied mid-last 12 months, halted the momentum in Reliance’s oil-to-chemical enterprise constructed on low-cost Russian crude.

Reliance Industries Ltd on Friday reported a bigger-than-expected drop in quarterly revenue as India’s greatest firm by market valuation took a success from the federal government’s windfall tax on gasoline exports.

The taxes had been levied on exports of petrol, diesel and aviation fuels halfway final 12 months, halting the momentum in Reliance’s oil-to-chemical (O2C) business built on cheap Russian crude and excessive demand for transportation fuels.

The downstream chemical merchandise had skilled margin stress from extra provide and comparatively weak regional demand through the quarter, the Mukesh Ambani-led conglomerate mentioned.

Its consolidated revenue fell almost 15 % to 157.92 billion rupees ($1.95bn) within the third quarter, with the windfall tax consuming into that by 18.98 billion rupees ($233.3m).

Analysts on common had anticipated revenue to drop to 162.58 billion rupees ($1.99bn), in accordance with Refinitiv IBES.

Higher depreciation and finance prices pushed up Reliance’s whole bills by almost 16 % to 2.01 trillion rupees, a much bigger bounce than the corporate’s income progress of 15.3 % to 2.21 trillion rupees ($24.7bn).

The firm additionally mentioned it was on observe to hit manufacturing of 30 million commonplace cubic meters of fuel per day subsequent monetary 12 months after the commissioning of its deepwater MJ fuel condensate area within the Bay of Bengal KG-D6 block.

It expects fuel value realisations to stay excessive within the close to time period, the corporate mentioned in a name.

Reliance, which has diversified its companies through the years to retail, telecom and, just lately, inexperienced power, mentioned it accepted elevating as much as 200 billion rupees ($2.4bn) by way of non-convertible debentures. Net debt as of December 31 stood at 1.10 trillion rupees ($13.5bn).

While its O2C enterprise remained beneath stress, Reliance’s telecom arm reported a 28.3 % rise in third-quarter revenue. Its common income per consumer – a key efficiency metric for telecoms – rose 17.5 % year-over-year.

The retail section’s quarterly income grew 17.2 % to a report 676.23 billion rupees ($8.3bn).