India's Reliance Sees Profits Drop Over Underperforming Energy Division
Date
7/19/2024 2:00:19 PM
(MENAFN- The Peninsula)
AFP
Mumbai: Indian billionaire tycoon Mukesh Ambani's Reliance Industries on Friday posted a 5.45 percent drop in earnings for the June quarter as a dip in its key energy units overshadowed growth in the conglomerate's consumer divisions.
Ambani, Asia's richest man, made global headlines last week after celebrities, politicians and business elites jetted into India's financial capital Mumbai for the wedding of his youngest son.
Reliance is India's most valuable company by market capitalisation and has carried out aggressive expansion into retail, telecoms and green energy.
But the company still relies heavily on its traditional energy business, with chairman Ambani saying the oil-to-chemicals division faced a "challenging operating environment".
"The business was impacted by lower fuel cracks with tepid global demand and ramp-up of new refineries," he said in a statement.
Net profit attributable to owners of the company came in at 151.38 billion rupees ($1.8 billion), below analyst expectations.
Revenue from operations, however, rose 12 percent year-on-year to 2.36 trillion rupees, helped by a solid performance across divisions.
Reliance's consumer divisions remained key performers with telecom arm Jio posting a 12 percent rise in net profit year-on-year to 54.45 billion rupees.
Gross revenue from its retail business was up 8.1 percent to 756 billion rupees despite a heatwave in parts of the country that has hammered discretionary spending.
Footfalls across its stores grew to 296 million for on-year growth of 18.9 percent.
Reliance Industries shares ended 1.9 percent lower in Mumbai ahead of the earnings announcement.
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