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Reliance profit jumps on energy, retail business

Reliance diversified in recent years into new areas including telecom and retail

Reliance profit jumps on energy, retail business

India's Reliance Industries reported a better-than-expected lift in net profit for the March quarter on Friday (21), driven by strong growth in its energy and retail divisions.

Reliance, owned by Asia's richest man Mukesh Ambani, reported a net profit of Rs 192.99 billion (£1.89bn) in the first three months of the year.


The result was 19.11 per cent higher than the same period last year and exceeded analysts' expectations of slower profit growth of around Rs 168bn 1.65bn), according to a poll by The Economic Times.

Reliance's oil-to-chemical segment "posted its highest-ever operating profit despite global uncertainties and disruptions in commodity trade flows", Ambani said in a statement.

"Our oil and gas segment also delivered very strong growth."

Revenue from operations came in slightly below market estimates at £21.21bn, 2.1 per cent higher from the previous corresponding period but 1.9 per cent lower than the December quarter.

Earnings before interest, taxes, depreciation and amortisation for the oil-to-chemical unit was Rs 162.93bn (£1.6bn), an increase of 14.4 per cent from the 2022 reporting quarter.

But revenues for the division slipped 11.8 per cent on lower crude oil and downstream product prices.

Revenues from the energy giant's smaller oil and gas exploration and production business more than doubled to Rs 45.56bn (£450 million) year-on-year on the back of higher prices and increased production.

Telecom arm Reliance Jio reported a 13.01 per cent increase in net profit to Rs 47.16bn (£460m) from a year ago but saw an increase of just 1.68 per cent from the previous quarter.

Gross revenues from Reliance's retail business hit a record high of Rs 692.67bn (£6.79bn).

The Mumbai-headquartered firm reported record footfall of 219 million, with 966 new store openings.

Operations at Reliance, India's largest company by market capitalisation, have been powered by its oil and petrochemicals businesses.

(Reuters)

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