Ambani’s Reliance Tops Profit Estimate Despite Iran War Woes

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Or sign-in if you have an account.Mukesh Ambani, chairman of Reliance Industries Ltd. Photo by Prakash Singh /Photographer: Prakash Singh/Bloo(Bloomberg) — Reliance Industries Ltd.’s quarterly earnings beat analyst estimates, driven by strong refining margins and steady growth across its consumer technology units, unfazed by the Iran war-induced disruptions.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountNet income fell 22% to 209.5 billion rupees ($2.2 billion) for the three months ended June 30, according to an exchange filing Friday. That surpassed the average profit estimate of 198.23 billion rupees based on a Bloomberg survey of brokerage estimates. The year-on-year profit slip was not surprising as the metric in the same quarter last year was bumped up by a massive jump in one-time gain due to Reliance selling its stake in Asian Paints Ltd.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRevenue at the refining-to-retail group, led by billionaire Mukesh Ambani, rose 25% to 3.12 trillion rupees, bolstered by a 30% surge coming from the traditional oil-to-chemicals business. Total costs also climbed 27% to 2.88 trillion rupees.The energy businesses delivered a strong performance, supported by record refining margins for fuels such as diesel and jet fuel as well as higher petrochemical margins, Chairman Ambani said.“This was achieved despite a challenging global energy market backdrop with disrupted supply chains,” he said. “The start to FY27 gives me reason to be optimistic about the year ahead as we move forward with phased commissioning of new energy projects and unlock value” through the listing of the group’s telecom carrier.Reliance’s better-than-expected performance was anchored by strong refining margins, which helped offset lower production volumes caused by a scheduled maintenance shutdown at its domestic-market-focused, 663,000-barrel-a-day crude distillation unit. According to a July 8 note from Jefferies, this resilience was heavily supported by global trends, as benchmark Singapore gross refining margins surged nearly fourfold on-year to $21.2 per barrel in the June quarter, driven by a sharp spike in gasoline, diesel, and jet fuel crack spreads. The margins were $5.6 a barrel in the same quarter last year.“Refinery margins are likely to remain robust in the near term” amid strong summer demand and tight supplies, Reliance said in a separate company presentation.Consumer businesses also bolstered the earnings performance, with average revenue per user, or ARPU, at Reliance Jio Infocomm Ltd. — India’s largest the wireless operator — inching up to 215.60 rupees, up 0.7% from the preceding quarter. Digital services revenue rose 12% to 469 billion rupees.The retail unit’s revenue advanced 7.4% to 904.1 billion rupees, as it opened 252 stores during the quarter pushing the total store count to 20,169. But the margins in this segment could be impacted by the infrastructure build-out for its hyperlocal delivery service, Reliance said in the presentation.Reliance founders have also raised their stake in the conglomerate to 50.48% in the latest quarter — the most in nearly seven years — signaling their confidence in the company’s long-term prospects despite the stock’s prolonged slump in the wake of the US-Iran war.Shares of Reliance have slipped 15.5% this year, making it one of the biggest underperformers in the benchmark NSE Nifty 50 which has lost nearly 7%.—With assistance from Satviki Sanjay, Vikram Kumar and Saket Sundria.(Updates with details throughout.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.