India’s Reliance Industries posted a 43 per cent jump in second-quarter profit that exceeded market expectations on Friday, as rising demand for oil products and higher average selling prices boosted its core oil-to-chemicals business . The Mumbai-based conglomerate’s pandemic-hit energy and retail businesses are seeing a massive comeback and shoppers are back in stores as the pace of vaccinations picks up in India.
Revenue from the oil-to-chemical unit, home to both its refining and petrochemical operations, grew 58.1 percent, which also benefited from higher transportation fuel margins.
With the lifting of the lockdown, business in its retail division, which includes over 12,000 stores and supermarkets, returned to pre-pandemic levels with revenue of Rs 399.26 billion.
“All our businesses show growth at pre-COVID levels,” Mukesh Ambani, chairman and Asia’s richest man, said in a statement.
RelianceIndia’s most valuable company, has entered the retail and telecom sectors in recent years to take advantage of India’s consumer boom as it seeks to reduce its reliance on its core energy unit.
Reliance’s telecom arm live With a net increase of 23.8 million subscribers compared to a year ago, profit grew by 24 percent.
The company said consolidated profit rose to Rs 136.80 billion for the quarter ended September 30, from Rs 95.67 billion a year ago.
Analysts had expected an average profit of Rs 134.65 billion, according to data from Refinitiv.
Total revenue from operations grew 50 per cent to Rs 1.74 trillion from a year ago.
© Thomson Reuters 2021