Indian conglomerate Reliance Industries on Friday reported a better-than-expected rise in first-quarter net profit, driven by strong growth in energy and distribution. The group controlled by Mukesh Ambani, Asia’s top fortune, posted a net profit of 192.99 billion rupees ($2.35 billion) in the first three months of the year.
The increase is 19.1% over the same period of 2022 and has far exceeded the expectations of financial analysts, who were expecting 168 billion rupees, according to a survey by the leading Indian business daily, The Economic Times. Reliance’s oil and chemical business “posted its highest ever operating profit despite global uncertainties and disruptions in commodity trade flows,” Ambani said in a statement.
Total revenue, however, fell slightly short of market estimates at 2,160 billion rupees ($26.37 billion), 2.1% higher than the same period last year, but 1.9% lower than in Q4 2022. Earnings before interest, taxes, depreciation, and amortization for the oil and chemical business amounted to 162.93 billion rupees ($1.99 billion), an increase of 14.4 percent over the equivalent quarter of 2022.
However, sales in this activity fell by 11.8% due to a price effect, particularly for distillates. On the oil and gas exploration and production side, a smaller business for the energy giant, revenues more than doubled year-on-year, boosted by both higher prices and increased production, to 45.56 billion rupees. Telecom subsidiary Reliance Jio is reporting a 13% year-over-year increase in net profit to Rs47.16 billion ($574.76 million) and a 1.68% increase from the fourth quarter of 2022.
India’s largest company by market capitalization, an oil and petrochemical giant, has diversified into new areas in recent years, including telecoms and retail. Its gross retail revenues peaked in the first quarter at 692.67 billion rupees ($8.44 billion), thanks to 966 store openings, which contributed to record footfall in its stores. The stock closed up 0.14% on Friday.
