15 october 2024 : Reliance Industries Ltd., led by billionaire Mukesh Ambani, reported a profit that once again fell short of analysts’ expectations, primarily due to weak margins in its core oil refining sector, which outweighed the benefits from increased telecom tariffs.
For the quarter ending September 30, India’s largest company by market value saw its net income decline by 4.8% to 165.6 billion rupees ($2 billion), as per an exchange filing on Monday. This figure was below the average analyst estimate of 188.14 billion rupees compiled by Bloomberg, marking the sixth consecutive quarter of missing earnings projections.
The conglomerate, which spans refining to retail, reported revenue of 2.35 trillion rupees, meeting expectations. Total costs rose by 1.4% to 2.15 trillion rupees. Additionally, other income saw a significant increase of 27% to 48.8 billion rupees.
In a statement, Ambani commented, “Our performance reflects strong growth in digital services and the upstream business,” noting that this growth helped to partially counterbalance the weak performance of the oil-to-chemicals division, which was affected by unfavorable global demand and supply dynamics.