India’s Reliance posts 42% jump in third-quarter profit to $2.5bn

Higher average sales price for oil products boosted the company’s core oil-to-chemicals business

Reliance's consolidated net profit attributable to owners of the company rose to $2.5bn in the three months to the ending of December from the same quarter in 2020. Reuters

Reliance Industries, the Indian conglomerate controlled by billionaire Mukesh Ambani, reported a 42 per cent increase in fiscal third quarter net profit as the group recorded growth across its units, while higher demand for oil products boosted its core chemicals-to-oil business.

Net profit attributable to owners of the company, surged to 185.5 billion rupees ($2.5bn) in the three months to the end of December, from the same quarter in the previous year, it said on Friday. The results beat the average 152.6bn rupee profit expectation of analysts polled by Bloomberg.

Revenue from operations grew nearly 54 per cent year-on-year to $25.7bn.

“Reliance has posted best-ever quarterly performance in Q3 FY22 with strong contribution from all our businesses. Our consumer businesses, retail and digital services have recorded highest ever revenues and Ebitda [earnings before interest, taxes, depreciation, and amortisation],” Mr Ambani, chairman and managing director of Reliance Industries, said.

“During this quarter, we continued to focus on strategic investments and partnerships across our businesses to drive future growth.”

Reliance Industries’ telecom unit Jio reported a 9 per cent annual rise in third quarter profit to $511 million as it added 10.2 million customers and reached a total customer base of 421 million as of December 31.

Revenue from the company’s oil-to-chemicals unit, home to both its refining and petrochemicals operations, rose 57 per cent to $17.7bn on the back of the increase in oil prices and higher volumes.

“The recovery in global oil and energy markets supported strong fuel margins and helped our O2C business deliver robust earnings. Our oil and gas segment delivered strong growth in Ebitda with volume growth and improved realisation,” Mr Ambani added.

The company has a target to reach net-zero carbon by 2035.

“We are making steady progress towards achieving our vision of net-zero carbon by 2035. Our recent partnerships and investments in technology leaders in the solar and green energy space is illustrative of our commitment to partner India and the world in the transition to clean and green energy,” Mr Ambani said.

"We continue to pursue growth initiatives and collaborate with global leaders who share our vision of a sustainable future for our planet.”

Reliance’s retail arm recorded a 23 per cent year-on-year jump in third quarter net profit to $304m as the company “recorded all time high revenues across all consumption baskets driven by highest ever store sales and sustained growth momentum in digital and new commerce”.

“Retail business activity has normalised with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country,” Mr Ambani said. “Our digital services business has delivered broad-based, sustainable, and profitable growth through improved customer engagement and subscriber mix.”

During the quarter, the company opened 837 new shops, taking the total count to 14,412 stores.