Reliance Industries Ltd., India’s most valuable company, reported a 22.5% increase in fourth-quarter profit, helped by higher fuel demand and margins in its core energy business.
India’s most valuable Reliance Industries Ltd on Friday reported a 22.5% rise in fourth-quarter profit, helped by higher fuel demand and margins in its core energy business.
Revenue from the company’s O2C operations – which include the world’s largest refining complex at Jamnagar and petrochemicals plants – grew more than 44% to Rs 1.46 trillion.
Even as Reliance has diversified its business to retail, telecommunications and more recently green energy over the years, the group’s oil-to-chemical (O2C) operations generate a large portion of its revenue. Is part of.
Mukesh Ambani, Chairman and Managing Director, said, “Gradual opening up of economies… Continued high utilization rates across sites and improvement in transportation fuel margins and volumes have driven our O2C earnings.”
Revenue growth in the O2C business was driven by a sharp rise in crude oil prices with Brent crude up nearly 39% in the March quarter.
Western sanctions imposed on Moscow in response to the invasion of Ukraine have reduced the supply of a product such as diesel and improved refining margins globally. Russia called its actions in Ukraine a “special operation”.
Reliance, which produces gas from an ultra-deep water block off India’s east coast, benefited from higher production, price realization and strong demand. The company said domestic gas prices are expected to increase further from October.
The group posted a consolidated profit of INR 162.03 billion for the quarter ended March 31, as against INR 132.27 billion a year ago.
Reliance’s retail business, which took a hit due to the pandemic-related lockdown, saw a 23.2% jump in revenue on a rebound in consumer demand.
Telecom unit Jio Infocomm’s profit rose 24%, mainly driven by higher average revenue per user.
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