India's Reliance profits surge on one-time gain, strong consumer show
Led by Asia's richest man Mukesh Ambani, Reliance is India's most valuable company by market cap and has aggressively expanded into retail, telecoms and green energy in recent years.
Net profit attributable to owners of the company came in at 269.9 billion rupees ($3.13 billion) for the April-June quarter, a 78.3% jump from the 151.3 billion rupees reported in the same period last year.
These figures were boosted by a one-off gain from Reliance selling its stake in India's top paint maker Asian Paints, with the company's earnings report acknowledging a nearly 280% on-year rise in other income. But the company's bottom line still surpassed the average analyst estimate of 200.59 billion rupees, a performance aided by the conglomerate's retail and telecom units.
Revenue from operations for Reliance meanwhile came in at 2.48 trillion rupees, a 5.27% year-on-year increase.
Despite an aggressive expansion into retail, telecoms and green energy, the firm still relies heavily on its traditional oil business to make money.
Its core oil-to-chemicals division struggled for most of 2024 as global uncertainty upset the industry's supply-demand dynamics, with the division continuing to battle lingering weakness.
Chairman Ambani acknowledged in a statement that energy markets encountered 'heightened uncertainty' during the quarter.
The conglomerate's earnings report noted that revenue for the oil-to-chemicals division was down due to 'a fall in crude oil prices' and a planned shutdown.
Reliance's retail and telecom arms, however, remained bright spots.
Gross revenue from its retail business was up 11.3% to 841.7 billion rupees despite the early onset of monsoon rains which hurt sales of air-conditioners.
Meanwhile, the telecom unit's average revenue per user, a key metric of topline growth, rose nearly 15% yearon-year to hit 208.8 rupees on the back of strong data consumption and tariff hikes.
Reliance Industries shares closed flat in Mumbai ahead of the earnings announcement on Friday.
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