Increasing the profits of India’s dependent industries; powered by the oil trade

The logo of Security Industries is seen in its booth at the Vibrant Gujarat Global Trade Show in Gandhinagar, India, Jan. 17, 2019. REUTERS/Amit Dave

BENGALURU, July 22, 2010 (FBC) India’s Reliance Industries Ltd (RELI.NS) on Friday reported a 46.3 percent jump in June-quarter profit. – Chemical business.

Mukesh Ambani-led Congress said consolidated profits rose to 179.55 billion rupees ($2.25 billion) as of June 30, compared with 122.73 billion rupees a year earlier.

A few Western buyers emerged as one of the key buyers of Russian crude after Moscow invaded Ukraine in late February.

During the quarter, the private refiner boosted oil exports to European countries, particularly those facing shortages due to sanctions on Russia. Read more

“Geopolitical conflict has caused significant disruption to energy markets and disrupted traditional trade flows. This has resulted in tighter oil markets and improved margins,” said Mulls Armani, chairman and managing director of Reliance Industries.

Refining margins for diesel, gasoline and jet fuel in Asia hit record highs in June.

Consolidated revenue from its oil-to-chemicals business – which includes the world’s largest refining complex at Jamnagar and petrochemical plants – jumped 56.7% to 1.62 trillion rupees, marking its best-ever quarterly performance, the company said.

Reliance, which produces gas from its deepest water block off the country’s east coast, said it has benefited from a revision in local gas prices and expects higher domestic prices from October.

India keeps domestically produced gas in line with international benchmarks. Read more

V. Srikanth, joint chief financial officer of Reliance, said the export tax would limit India’s overseas fuel sales and reduce awareness.

In the year On July 1, India imposed a windfall tax on petrol, diesel and aviation fuel after private refiners switched to overseas sales instead of selling at below-market prices within the country. Read more

However, the government later lifted the export tax on gasoline and reduced taxes on other refined fuels as leaks eased. Read more

The company’s telecom unit, Jiao, reported a nearly 24 percent rise in net profit, while gross revenue at the country’s largest retailer rose 52 percent. Read more

According to Dependency Average Revenue Per User (ARPA), a key performance measure, for Jiao was at 175.7 rupees per subscriber in the quarter, a 27 percent increase from a year ago.

Mulls Armani stepped down from its telecom arm last month, handing over the reins to his son Abash, paving the way for a leadership transition in the business empire. Read more

($1 = 79.7980 Indian Rupees)

Reporting by Nalur Sethuraman in Bengaluru and Nidhi Verma in Delhi; Editing by Sriraj Kalluvila and David Evans

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