By: Pramod Thomas
INDIAN oil-to-telecoms giant Reliance Industries reported quarterly earnings that beat analyst estimates, helped by a strong recovery across its diversified businesses.
The conglomerate, which is owned by Asia’s richest man, Mukesh Ambani, reported a net profit of Rs 36.8 billion ($1.8bn) between July and September, 43 per cent higher than the same period last year.
Revenues from operations increased 49 per cent year-on-year, aided by both its legacy energy business and newer ventures like retail.
“As the pandemic retreats, I am pleased that Reliance has posted a strong performance,” chairman and managing director Ambani said in a statement following the results.
“This demonstrates the inherent strengths of our businesses and the robust recovery of the Indian and global economies. All our businesses reflect growth over pre-Covid levels,” the billionaire added.
Revenues from the oil, gas and petrochemicals business — which accounts for nearly 70 per cent of Reliance’s total income — jumped 58 per cent year-on-year, as global energy demand recovered.
Revenues from Reliance’s retail business recovered more sharply than expected, rising 17.8 per cent compared to the previous quarter, which was badly hit by Covid-19.
Earlier this month, Reliance opened its first 7-Eleven convenience store in Mumbai, ahead of a “rapid rollout” planned across the country as the firm seeks to boost its retail presence in the country of 1.3 billion.
Ambani is locked in a high-stakes battle with Jeff Bezos, the world’s richest man, as Amazon and Reliance fight for a share of India’s massive e-commerce market.
The two firms are engaged in a row over Ambani’s acquisition of domestic retail giant Future Group, which Amazon has sought to delay.
Earlier on Friday, a Singapore-based arbitration panel upheld a year-ago ruling to halt the $3.4-billion deal.
Reliance’s multi-billion-dollar fortune has been powered by oil and petrochemicals businesses, but the company has diversified into areas including telecoms and retail in recent years.
