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BCN-24
INDIA-RELIANCE-ECONOMY-EARNINGS
India’s Reliance posts 8.8% rise in Q3 profit on oil refining business
MUMBAI, Jan 18, 2019 (BSS/AFP) – Indian conglomerate Reliance Industries
on Thursday reported a 8.8 percent rise in its third quarter consolidated net
profit, boosted by growth in its core business of petrochemicals and oil
refining.
The Mumbai-based company owned by India’s richest man Mukesh Ambani said
its consolidated net profit for the three months through December rose to
102.50 billion rupees ($1.44 billion) from 94.20 billion rupees reported a
year earlier, even as its refining margins fell.
“In an oil price environment that witnessed heightened volatility through
the quarter, RIL has delivered strong quarterly results on a consolidated
basis,” Reliance chief Ambani said in a statement.
Reliance said it maintained robust growth in its retail and telecom
business which helped the company achieve overall profitability despite
global fluctuations in crude oil prices.
Revenues for the period were up 56.4 percent to 1.60 trillion rupees.
Reliance said in a statement that its gross refining margin, the profit
earned from each barrel of crude, was down to $8.8 in the December quarter
from $11.6 in the previous year.
Refining margins are a key profitability gauge for Reliance, one of the
world’s largest refiners.
The firm has business interests in refining, retail, telecommunications
and petrochemicals.
Meanwhile, RIL’s telecom venture Jio reported robust growth by increasing
its subscriber base by 27.9 million for the quarter.
Jio also reported a 65 percent rise in its profits to 8.31 billion rupees,
adding to the quarterly results.
Ambani launched Reliance Jio with much fanfare in September 2016 offering
free services up to March 2017, sparking intense price wars which saw
consolidation in the Indian telecom sector.
Reliance shares fell almost half a percent Thursday ahead of the earnings
announcement, which came after the stock market closed.
BSS/AFP/HR/1022