Sunday, January 24, 2021

Mukesh Ambani’s Reliance Industries Grows By 31%, Beating All Predictions & Estimates

Indian conglomerate Reliance Industries headed by billionaire Mukesh Ambani reported a 31 percent jump in quarterly profits Thursday, due to a one-time gain from British oil giant BP’s investment in its fuel retailing business and a strong performance by its telecom arm Jio.

The Mumbai-based firm, which is owned by Asia’s richest man, Mukesh Ambani, said its consolidated net profit for the three months through June 30 rose to 132.33 billion rupees ($1.77 billion) from 101.04 billion rupees reported for the same period last year.

A Bloomberg survey of analysts had predicted net profit for the quarter to come in at $951 million, citing the impact of coronavirus-led restrictions on the firm’s retail and oil businesses.

Reliance said its gross refining margin, the profit earned from each barrel of crude, was down to $6.3 in the June-ended quarter from $8.1 last year for the same period.

Refining margins are a key profitability gauge for the company, which operates the world’s biggest refining complex in Gujarat state. In recent months Ambani has raised more than $26 billion in a rights issue and through selling stakes in Reliance to foreign investors.

The oil-to-telecoms giant is locked in a fierce battle with Amazon and Walmart for a share of India’s e-commerce market. Ambani’s plan to partner with Google and launch an affordable smartphone will see him compete with Chinese manufacturers who already have a strong foothold in the South Asian nation.

“Our growth strategy is aimed at meeting the needs of all the 1.3 billion Indians. We remain focused on playing a leading role in India’s transformation into a Digital Society,” Ambani said in a statement.

Major players including Google, Facebook, Intel, and others have already ploughed some $15 billion into Reliance’s digital unit, Jio Platforms, this year. Its telecom arm Jio is the country’s biggest mobile operator with 398.3 million subscribers.

Ambani has also announced plans to launch 5G services in India next year and export the technology once it had been deployed across the country.

In June, BP paid $1 billion to Reliance for a 49 percent stake in its fuel marketing business, with the aim of expanding the number of retailing stations from 1,400 to 5,500 over the next five years. Shares of Reliance Industries were up almost one percent in Mumbai ahead of the earnings release.

Featured

Russia To Supply Pantsir-S1 Air Defense System To Myanmar Amid Warming Ties With India, Japan

As India and Japan are getting closer to Myanmar militarily to counter China, the Southeast Asian nation has not forgotten its old ally Russia....

India, Saudi Arabia Ties ‘Under Duress’ After Riyadh Introduces A New Economic Measure?

Just when India’s coronavirus-battered economy started showing signs of recovery, Saudi Arabia's decision to cut crude oil production does not augur well for the...

​China’s Growing Global Stature As Weapons Producer Threatens Russia’s Export Revenues

China overtook Russia to become the world's No. 2 arms producer between 2015 and 2019, according to data released by the Stockholm International Peace...

Why Anti-Israel Rhetoric Keeps Resurfacing In Pakistan Despite Imran Khan Ruling Out Ties With Jewish State?

Pakistan is witnessing a wide-scale anti-Israel movement led by Maulana Fazlur Rehman of the Jamiat Ulema-e Islam (Fazl), a right-wing Islamist party, which opposes...

Why India’s Ruling Party BJP May Wash Its Hands Of Supreme Court-Monitored NRC Exercise

India’s biggest dilemma vis-à-vis the issue of illegal immigration from Bangladesh is that its all-weather ally Dhaka never acknowledges this as their problem. And...