India’s Reliance Industries reports strong profits on COVID-19 recovery
Mumbai, India - Indian oil-totelecoms giant Reliance Industries reported quarterly earnings that beat analyst estimates, helped by a strong recovery across its diversified businesses.
The conglomerate, which is owned by Asia’s richest man, Mukesh Ambani, reported a net profit of R136.8bn (US$1.8bn) between July and September, 43 per cent higher than the same period of last year.
Revenues from operations increased 49 per cent year-onyear to R1.74tn, aided by both its legacy energy business and newer ventures like retail.
“As the pandemic retreats, I am pleased that Reliance has posted a strong performance,” chairman and managing director Ambani said in a statement following the results.
“This demonstrates the inherent strengths of our businesses and the robust recovery of the Indian and global economies. All our businesses reflect growth over pre-COVID levels,” the billionaire added.
Revenues from the oil, gas and petrochemicals business - which accounts for nearly 70 per cent of Reliance’s total income - jumped 58 per cent year-onyear, as global energy demand recovered.
Revenues from Reliance’s retail business recovered more sharply than expected, rising 17.8 per cent compared to the previous quarter, which was badly hit by COVID-19.
Earlier this month, Reliance opened its first 7-Eleven convenience store in Mumbai, ahead of a ‘rapid rollout’ planned across the country as the firm seeks to boost its retail presence in the country of 1.3bn.
Ambani is locked in a highstakes battle with Jeff Bezos as Amazon and Reliance fight for a share of India’s massive e-commerce market. The two firms are engaged in a row over Ambani’s acquisition of domestic retail giant Future Group, which Amazon has sought to delay.