MUMBAI: Reliance Industries Ltd's June-quarter profit rose 6.8pc, as growth in the Indian conglomerate's retail and telecoms businesses helped offset a slowdown at its mainstay oil refining and petrochemical operations.
The Mumbai-headquartered company, led by Asia's richest man Mukesh Ambani, said on Friday revenue from its retail and telecom operations jumped 47.5pc and 44pc, respectively, in the three months to June, helping overall revenue from operations climb 21.3pc to 1.61 trillion rupees ($23.40 billion).
Separately, Reliance Industries said Canada's Brookfield Asset Management will invest 252.15 billion rupees in a trust that controls Reliance's telecom tower infrastructure assets.
The results come as Reliance, the operator of the world's biggest refinery complex, bolsters other parts of its sprawling business such as retail and telecoms, to match revenues from its dominant oil refining and marketing unit.
The retail business, which houses supermarkets and a network of speciality stores, has doubled or grown at above 50pc in each of the last four quarters, and in May Reliance announced a deal to buy British toy store chain Hamleys.
Meanwhile, Reliance's Jio telecom unit signed up 24.5 million more subscribers in the June quarter. Jio reshaped India's telecom industry in 2016, when it took on established rivals such as Bharti Airtel and Vodafone Idea with aggressive pricing.
Revenue from refining and marketing rose, but earnings before interest and taxes fell 15pc as refining margins declined.
Average gross refining margin, or the money earned on each barrel of crude processed, came in at $8.1 per barrel for the quarter, the lowest in 18 quarters but outperforming the benchmark Singapore complex margin by $4.5 per barrel. Crude prices have risen 23pc this year, increasing costs and squeezing margins for oil refiners.
Net profit climbed to 101.04 billion rupees in the three months ended June 30 from 94.59 billion rupees a year earlier, the country's largest company by market value said Analysts on average had expected a profit of 96.96 billion rupees, according to Refinitiv data.
Standalone profit, which reflects Reliance's refining, petrochemicals and oil and gas production businesses, was 90.36 billion rupees.
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