Monday, Sep 28, 2020 | Last Update : 11:30 AM IST

188th Day Of Lockdown

Maharashtra1339232103001535571 Andhra Pradesh6756746050905708 Tamil Nadu5808085251549313 Karnataka5755664622418582 Uttar Pradesh3870853258885594 Delhi2644502284365147 West Bengal2410592110204665 Odisha201059165432820 Telangana1858331544991100 Bihar175898161510881 Assam167374136712625 Kerala160935111327636 Gujarat1303911105923394 Rajasthan1247301042881412 Haryana1205781012731273 Madhya Pradesh117588932382152 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  Business   Companies  18 Jan 2020  Billionaire Ambani's Reliance posts record profit on consumer strength

Billionaire Ambani's Reliance posts record profit on consumer strength

REUTERS
Published : Jan 18, 2020, 10:23 am IST
Updated : Jan 18, 2020, 10:23 am IST

The company had previously said it would sign a definitive agreement with Aramco by March 2020.

Revenue at its retail and telecoms units each jumped more than 25 per cent in the December quarter as the company, headed by Asia’s richest man.
 Revenue at its retail and telecoms units each jumped more than 25 per cent in the December quarter as the company, headed by Asia’s richest man.

Mumbai: Indian oil-to-telecoms conglomerate Reliance Industries Ltd posted another record quarterly profit on Friday, as double-digit growth at its consumer-facing businesses cushioned weakness in its energy divisions.

Revenue at its retail and telecoms units each jumped more than 25 per cent in the December quarter as the company, headed by Asia’s richest man, Mukesh Ambani, invests heavily to bring them on par with its dominant petrochemicals and refining businesses.

 

“We saw consistent same-store sales growth and record footfall across our stores,” Ambani said in a statement, with the remarks coming when growth in Asia’s third-largest economy has slowed to multi-year lows.

The Mumbai-headquartered company has rapidly grown to become India’s largest retailer with over 10,000 stores selling groceries, consumer electronics and apparel, while its telecom unit, Jio, has become the country’s largest wireless operator in about three years since launch.

Profit at Jio surged 62 per cent to 13.50 billion rupees, led by subscriber additions of 14.8 million during the reported quarter.

Reliance, which runs the world’s biggest oil refining complex, said gross refining margin - the profit earned on each barrel of crude oil processed - was USD 9.2 per barrel, slightly lower than the prior quarter but better than a year earlier.

 

“The third-quarter results for our energy business reflect the weak global economic environment and volatility in energy markets,” Ambani, the company’s chairman, said.

Meanwhile, the proposed purchase of 20 per cent in Reliance’s oil-to-chemicals arm by Saudi Aramco will take a “few months” to be finalized, Joint Chief Financial Officer V Srikanth said at a press briefing, adding Reliance wouldn’t comment on a specific timeframe for the deal to close.

“We are making very good progress, and there is engagement across teams which is very intense,” Srikanth said of the deal, which would be one of the largest ever foreign investments in India.

 

The company had previously said it would sign a definitive agreement with Aramco by March 2020.

The weak performance at the petrochem and refining unit led to a 2.5 per cent drop in revenue from operations to 1.57 trillion rupees.

Still, Chief Financial Officer Alok Agarwal said 2020 would be a “better year from a global growth point of view”, which should help boost margins in the refining and petrochemicals units.

Consolidated net profit rose 13.5 per cent to 116.40 billion rupees (USD 1.64 billion) in the three months to Dec. 31, above the previous quarter’s record and also beating analysts’ average forecast of 114.32 billion rupees, according to Refinitiv data.

 

Tags: reliance industries, mukesh ambani, profit, revenue
Location: India, Maharashtra, Mumbai (Bombay)