INDIA's Reliance Industries reported weaker-than-expected quarterly profits Friday (21), weighed down by its oil-to-chemicals arm even as its consumer-facing divisions posted healthy profits.
Reliance, owned by Asia's richest man Mukesh Ambani, reported a 10.8 per cent fall in net profit to Rs 160.1 billion (£1.5bn) in the three months to June 30, compared to the same period last year.
Revenues from operations for India's most valuable company by market capitalisation slipped by 5.3 per cent year-on-year to Rs 2.1 trillion (£20bn).
Revenues from Reliance's oil-to-chemicals business -- which account for more than half of the company's overall sales -- came in at Rs 1.33tn (£12.6bn), a 17.7 per cent decline from the previous corresponding period.
"O2C (oil-to-chemicals) segment delivered a resilient performance despite short-term macro challenges," Reliance said in its earnings report, adding that the year-on-year readings were skewed due to last year's "historic high" refining margins.
"Demand was impacted by destocking on recessionary fears and high interest rates, as well as slower-than-expected ramp-up in China markets."
Telecoms arm Reliance Jio saw net profit lift by 12.18 per cent to Rs 48.6bn (£461 million) from the previous corresponding period, and by 3.12 per cent from the first three months of the year.
It added more than nine million new subscribers for the period.
Revenues from Reliance's retail business jumped 19.46 per cent on-year to Rs 699.4bn (£663bn) for the quarter.
The Mumbai-headquartered firm reported a record-high footfall of 249 million for the quarter, with 555 new store openings.
The company declared a dividend of nine rupees per share.
Reliance's multibillion-dollar enterprise has been driven by its oil and petrochemicals businesses. In recent years, the company has diversified into new areas including telecoms and retail.
On Thursday (20), the company spun off Jio Financial Services in a bid to expand its reach into the consumer lending space.
(AFP)
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