Reliance Industries net profit more than triples in the last eight quarters to $2.8 billion

• The oil-to-chemical giant’s net profit in October to December quarter grew 32% sequentially to ₹20,539 crore.
• RIL’s consolidated revenue jumped 52.2% to ₹2.09 lakh crore because of strong performance in oil to chemicals and retail business.
• Its oil and gas business has grown the highest by 55%.

Asia’s richest man Mukesh Ambani-led conglomerate Reliance Industries (RIL) has reported strong earnings for the past three months. India’s biggest private corporation has more than tripled its net profit in the last eight quarters to $2.8 billion.

Strong performance in retail, oil and digital business boosted the overall profitability for the company. “Retail business activity has normalised with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country,” said Mukesh Ambani, chairman and managing director (MD) at RIL.

The oil and gas business of RIL has grown the highest by 55% because of ramp-up of gas production from Krishna Godavari Dhirubhai 6 (KG D6 block). The KG-D6 block lies in the Krishna-Godavari basin of the Bay of Bengal on the eastern coast of India.
Analysts had expected a stronger revenue growth for the company led by strong refining, oil and gas business. Further the stock is expected to gain because of growth in these segments.

“We believe higher oil prices, expectations of a refining margin recovery, and ramp-up of JioMart should continue to support the stock. We do not build in any holding company discount at this point,” said a report by JP Morgan.

On January 21, shares of RIL closed 0.1% lower at ₹2,476.05 per share.

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