RELIANCE INDUSTRIES reported a 7.38 per cent year-on-year increase in profit for the December quarter on Thursday, driven by growth in its consumer-focused divisions.
The company, led by Mukesh Ambani, remains India’s most valuable by market capitalisation.
While expanding into retail, telecoms, and green energy, Reliance still relies heavily on its oil-to-chemicals business, which had faced recent challenges, leading to three consecutive quarters of profit decline last year.
Breaking this trend, Reliance recorded a net profit of £1.75 billion for the December quarter, slightly surpassing the analyst consensus of £1.73 bn.
Revenue from operations rose 6.97 per cent year-on-year to £22.99 bn, with growth seen across all divisions.
Chairman Mukesh Ambani said in a statement that the petrochemicals business had shown "innate resilience" despite the volatility in global energy markets.
He added that the digital services segment experienced "robust growth" due to subscriber additions and improved customer engagement, while the retail arm benefited from strong festive season demand.
The telecom segment's average revenue per user increased by 11.9 per cent to £1.92, supported by tariff hikes and a better subscriber mix.
Reliance's retail business recorded an 8.8 per cent increase in gross revenue, reaching £8.54 bn, supported by holiday season sales.
Store footfalls grew 5 per cent year-on-year to 296 million during the quarter.
Shares of Reliance Industries closed 1.14 per cent higher in Mumbai ahead of the earnings announcement.
Shein’s UK sales hit £2.05bn in 2024, up 32.3 per cent year-on-year, driven by younger shoppers.
The retailer benefits from import tax loopholes unavailable to high street rivals.
Faces mounting criticism over labour practices and sustainability as it eyes a London listing.
Tax edge drives growth
Chinese fashion giant Shein is transforming Britain’s online clothing market, capturing a third of women aged 16 to 24 while benefiting from tax breaks unavailable to high street rivals.
The fast-fashion retailer’s UK sales surged 32.3 per cent to £2.05bn in 2024, according to company filings, with pre-tax profits rising to £38.3m from £24.4m the previous year. The growth comes as established players like Asos struggle in an increasingly competitive landscape where young consumers prioritise value above all else.
Shein has partly benefited from a tax break on import duty for goods worth less than £135 sent directly to consumers, The rule lets overseas sellers send low-value goods to the UK tax-free, disadvantaging local businesses.
“The growth of Shein and Temu is a huge factor,” said Tamara Sender Ceron, associate director of fashion retail research at Mintel told The Guardian. “It is particularly successful among younger shoppers. It is also a threat to other fashion retailers such as Primark and H&M because of its ultra-low price model that nobody can compete with. It’s changed the market.
"The market dynamics reflect broader shifts in consumer behaviour. Online fashion sales reached £34bn last year, up 3 per cent, according to Mintel, but shoppers have become more cautious as disposable incomes shrink, and fashion competes with holidays, festivals, and streaming services for wallet share.
Scrutiny builds
Despite its commercial success, Shein faces mounting scrutiny. The company filed initial paperwork last June for a potential London Stock Exchange listing, but critics question its labour practices and environmental impact.
"Regardless of whether Shein gets listed on the London Stock Exchange, no company doing business in the UK should be allowed to play fast and loose with human rights anywhere in their global supply chains,” said Peter Frankental, economic affairs programme director at Amnesty International UK to BBC.
The “de minimis” rule has drawn renewed attention after US President Donald Trump scrapped a similar measure during his trade war with China.
Shein’s UK operation now employs 91 people across offices in Kings Cross and Manchester, focusing primarily on local market expertise.
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