MUMBAI: Reliance Industries has become the first Indian company to top $100 billion in annual revenue after the oil-telecom giant reported strong quarterly results in its energy, telecoms and retail businesses on Friday.
The conglomerate, which is owned by Asia’s richest man, Mukesh Ambani, recorded a net profit of 162.03 billion rupees ($2.1 billion) between January and March, or 22.5% of more than the same period last year.
Operating revenue rose 36.8% year-on-year to Rs 2.12 trillion, helped by both its historical energy business and new ventures such as retail.
Earnings in the quarter saw gross revenue cross 7.93 trillion rupees ($104.6 billion) for the year ended March 31.
“Despite the continued challenges of the pandemic and heightened geopolitical uncertainties, Reliance delivered a strong performance,” Chief Executive Officer Ambani said in a statement.
“Our O2C (oil-to-chemical) business has proven its resilience and demonstrated a strong recovery despite the volatility in the energy markets,” added the billionaire.
Revenue from Reliance’s oil refining and petrochemical businesses – which account for more than half of total revenue – benefited from higher crude oil prices, rising 44.2% year-on-year to $1.46 trillion rupees.
The energy giant’s smaller oil and gas exploration and production business saw revenue jump 136.8% year-on-year to 20 billion rupees, helped by rising gas prices.
But India’s intervention to keep domestic fuel prices low even as global oil prices soared in the quarter hurt Reliance’s nascent gas pump partnership with the British oil giant and of BP gas, the company said.
Telecom arm Reliance Jio’s net profit rose 22.9% to 43.13 billion rupees, boosted by tariff hikes undertaken in December 2021, even as its customer base shrunk by 10.9 million subscribers to the course of the quarter.
Reliance’s retail revenue hit a new all-time high of 580.17 billion rupees, helped by an early summer and strong demand for clothes and groceries.
Reliance’s multi-billion dollar fortune was fueled by oil and petrochemical companies, but the company has branched out into new areas including telecommunications and retail in recent years.
The company’s shares closed down 0.74% in Mumbai ahead of the earnings announcement on Friday.