Mumbai, India–Indian conglomerate Reliance Industries reported a better-than-expected lift in net profit for the March quarter on Friday, driven by strong growth in its energy and retail divisions.
Reliance, owned by Asia’s richest man Mukesh Ambani, reported a net profit of 192.99 billion rupees ($2.35 billion) in the first three months of the year.
The result was 19.11 percent higher than the same period last year and exceeded analysts’ expectations of slower profit growth of around 168 billion rupees, according to a poll by The Economic Times.
Reliance’s oil-to-chemical segment “posted its highest-ever operating profit despite global uncertainties and disruptions in commodity trade flows”, Ambani said in a statement.
“Our oil and gas segment also delivered very strong growth.”
Revenue from operations came in slightly below market estimates at 2.16 trillion rupees ($26.37 billion), 2.1 percent higher from the previous corresponding period but 1.9 percent lower than the December quarter.
Earnings before interest, taxes, depreciation and amortisation for the oil-to-chemical unit was 162.93 billion rupees ($1.99 billion), an increase of 14.4 percent from the 2022 reporting quarter.
But revenues for the division slipped 11.8 percent on lower crude oil and downstream product prices.
Revenues from the energy giant’s smaller oil and gas exploration and production business more than doubled to 45.56 billion rupees year-on-year on the back of higher prices and increased production.
Telecom arm Reliance Jio reported a 13.01 percent increase in net profit to 47.16 billion rupees ($574.76 million) from a year ago but saw an increase of just 1.68 percent from the previous quarter.
Gross revenues from Reliance’s retail business hit a record high of 692.67 billion rupees ($8.44 billion).
The Mumbai-headquartered firm reported record footfall of 219 million, with 966 new store openings.
Operations at Reliance, India’s largest company by market capitalisation, have been powered by its oil and petrochemicals businesses.
The company has diversified in recent years into new areas including telecoms and retail.
Its shares closed 0.14 percent higher in Mumbai trading on Friday ahead of the earnings announcement.