Reliance Industries Ltd (RIL) on Friday reported a 43% jump in quarterly profit, beating analysts’ estimates, on higher demand for fuels and chemicals.
Net profit rose to ₹13,680 crore in the quarter ended 30 September from ₹9,567 crore in the year earlier, the company said.
RIL reported a 50% increase in revenue from operations to ₹1.74 trillion from ₹1.16 trillion a year ago.
A Bloomberg survey of analysts estimated net sales of ₹1.47 trillion and profit of ₹13,063 crore.
“All our businesses reflect growth over pre-covid levels. Our operational and financial performance reflects a sharp recovery in the retail segment and sustained growth in oil-to-chemicals (O2C) and digital services business,” Mukesh Ambani, chairman and managing director of RIL, said in a statement.
Revenue from the oil-to-chemicals (O2C) unit rose 58.1%, benefiting from a sharp recovery in demand across products and higher transportation fuel margin, the company said.
“Our oil-to-chemicals business benefited from a sharp recovery in demand across products and higher transportation fuel margins. Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings resulting in healthy growth in revenues and margin expansion,” said Ambani.
On Friday, RIL’s shares fell 0.22% to ₹1,988.30 on BSE ahead of its earnings announcement, in line with the 0.17% decline in the benchmark Sensex.
On the telecom front, unit Reliance Jio Infocomm reported a 24% increase in profit to ₹3,528 crore from ₹2,844 crore a year ago.
The average revenue per user (Arpu) during the quarter rose to ₹143.60 from ₹138.4 per month during the first quarter of this fiscal.
Revenue from operations rose 7% to ₹18,735 crore from ₹17,481 crore in the year earlier.
“Jio, our digital services business, continues to transform the broadband market in India and set new benchmarks for the industry,” Ambani said.
Jio and Google are working together to make JioPhone Next available more widely in time for the Diwali festive season, the company said.
The company’s retail segment delivered gross revenue of ₹45,426 crore, an increase of 10.5%. Profit rose 74.2% to ₹1,695 crore.
During the quarter, 813 new stores were ready, taking the total count to 13,635 stores across 37.3 million sq. ft retail space while the company commissioned 86 warehouses and fulfilment centres spread across 2.5 million sq. ft to bolster its service capabilities.
The oil and gas segment saw a 23% increase in production from the previous quarter to 6 million standard cubic feet per day (mscmd) from the Satellite-Cluster field and new wells brought into the stream in US Shale Eagleford Assets.
The combined average production from KG D6 Block was over 18 mscmd during the quarter.
Segment revenue for the quarter increased more than fourfold to ₹1,644 crore.
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