INDIA's Reliance Industries reported on Friday (17) a nearly 10 per cent rise in quarterly profit, driven by a recovery in its core oil-to-chemicals business and growth in its consumer-facing divisions.
The retail-to-refining giant, led by Asia's richest man Mukesh Ambani, is India’s most valuable company by market capitalisation.
The conglomerate said net profit attributable to shareholders came in at £1.7 billion for the July–September quarter, up 9.7 per cent from the same period last year. Revenue from operations rose 9.9 per cent year-on-year.
Despite its aggressive push into retail, telecoms and green energy, Reliance continues to rely on its traditional oil business for most of its profits.
The conglomerate’s oil-to-chemicals division has struggled over the last 18 months as global uncertainty upset the industry’s demand-supply dynamics. The latest quarterly figures, however, show signs of a gradual recovery.
Chairman Ambani said the petrochemicals unit had delivered robust growth despite “continued volatility in energy markets,” with fuel margins recovering over the previous year.
“I am happy with the progress we are making in our new growth engines,” he added.
Reliance’s retail and telecom arms continued to remain bright spots. Gross revenue from the retail business was up 18 per cent year-on-year, helped by festive buying and India’s recent consumption tax cuts.
The telecoms unit — which will be spun off and listed next year — posted an 8.4 per cent year-on-year rise in average revenue per user (ARPU), a key indicator of topline growth. The conglomerate attributed the rise to promotional offers rolled out for its 5G services.
Reliance Industries shares closed 1.49 per cent higher in Mumbai ahead of the earnings announcement on Friday.
(AFP)
