Reliance’s profits hit by oil business slump

AFP | Mumbai                        

The Daily Tribune – www.newsofbahrain.com

Indian conglomerate Reliance Industries reported weaker-than-expected quarterly profits yesterday, 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 % fall in net profit to 160.1 billion rupees ($1.95 billion) 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 % year-on-year to 2.1 trillion rupees ($25.7 bn).

Revenues from Reliance’s oil-to-chemicals business -- which account for more than half of the company’s overall sales -- came in at 1.33 trn rupees ($16.2 bn), a 17.7 % decline from the previous corresponding period.

Telecoms arm Reliance Jio saw net profit lift by 12.18 % to 48.6 bn rupees ($593 million) from the previous corresponding period, and by 3.12 % 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 % on-year to 699.4 bn rupees ($853 bn) 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.