BCN-13 India’s Reliance reports 9.8 percent jump in profits

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BCN-13

INDIA-ECONOMY-EARNINGS-RELIANCE

India’s Reliance reports 9.8 percent jump in profits

MUMBAI, April 19, 2019 (BSS/AFP) – Indian conglomerate Reliance Industries
on Thursday reported a 9.8 percent rise in consolidated net profit boosted by
strong revenues from its telecom venture Jio and retail business.

The Mumbai-based company owned by Asia’s richest man, Mukesh Ambani, said
consolidated net profit for the three months through March rose to 103.62
billion rupees ($1.49 billion) from 94.38 billion rupees a year earlier for
the same quarter.
“Focus on service and customer satisfaction led to higher numbers of
subscribers and footfalls across our consumer businesses, driving robust
revenue growth,” Reliance chairman Mukesh Ambani said in a statement.

The company has business investments in refining, retail,
telecommunications and petrochemicals.

The company in March was forced to cap its crude imports from sanction-hit
Venezuela following pressure from the United States. It had also stopped
exporting diluents to the crisis-hit South American country.

Revenues for the period were up by 18 percent to 1.42 trillion rupees as
it reported a spurt in revenues from its retail businesses.

The company also said its telecom venture Jio reported a net profit of
8.40 billion rupees for the quarter due to an increase in its subscriber base
to 300 million.

Ambani launched Reliance Jio with much fanfare in September 2016 offering
free services up to March 2017, sparking intense fare wars and creating
consolidation in the Indian telecom sector.

Experts say Reliance is preparing to compete with e-commerce platform
Flipkart, backed by Walmart, and Amazon by announcing the launch of its
retail business.

Reliance said in a statement that its gross refining margin, the profit
earned from each barrel of crude, was down to $8.2 in the March quarter from
$8.8 in the previous quarter.

Refining margins are a key profitability gauge for Reliance, one of the
world’s largest refiners.

Shares of Reliance rose almost three percent Thursday ahead of the
earnings announcement, which came after the local stock market closed.

BSS/AFP/HR/1005