Reliance Industries Ltd. (RIL) recently reported a 0.1 percent rise in net profit for the fiscal fourth quarter to Rs 21,243 crore, exceeding expert predictions. This increase was primarily driven by a rebound in the company’s main oil-to-chemicals (O2C) sector. However, the company’s owners saw a slight decline in profits to Rs 18,951 crore in the fourth quarter, compared to Rs 19,299 crore in the same period last year.
Despite these mixed results, the company’s revenue for the three months ending March 31 rose to Rs 2.41 lakh crore. Analysts had predicted a profit of Rs 18,248 crore on revenue of Rs 2.39 lakh crore. Notably, Reliance has become the first Indian company to cross the Rs 100,000-crore threshold in pre-tax profits.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, highlighted the strong demand for fuels globally and limited flexibility in the refining system worldwide, which supported margins and profitability of the O2C segment. He also acknowledged the challenges faced by the downstream chemical industry but emphasized the company’s resilience in maintaining leading product positions and feedstock flexibility.
Furthermore, the company’s consolidated EBITDA for the quarter ended March 31 increased by 14.3% to Rs 47,150 crore compared to the same period last year. All four of the company’s primary segments – Jio, Retail, Oil & Gas, and O2C – posted robust operating results. The oil-and-gas segment witnessed strong growth, with a 47.5% increase over the previous year. The retail segment also performed well, with a 18.5% increase in EBITDA to Rs 5,829 crore.
RIL’s capital expenditures in the fourth quarter amounted to Rs 23,207 crore, which was more than offset by a cash profit of Rs 37,769 crore.
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