India’s Reliance Industries Ltd on Friday reported a 46.3% bounce in June-quarter revenue, as strong refining margins resulting from consumption of cheaper Russian crude and gasoline exports buoyed its dominant oil-to-chemicals enterprise.
The Mukesh Ambani-led conglomerate mentioned consolidated revenue rose to 179.55 billion rupees ($2.25 billion) within the three months ended June 30 in contrast with 122.73 billion rupees a yr earlier.
Reliance emerged as one of many key patrons of discounted Russian crude after some Western patrons shunned it following Moscow’s invasion of Ukraine in late February.
The personal refiner through the quarter additionally boosted gasoline exports, particularly to European international locations grappling with shortages because of the sanctions on Russia.
“Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows. This along with resurgent demand has resulted in tighter fuel markets and improved product margins,” mentioned Mukesh Ambani, chairman and managing director of Reliance Industries.
Refining margins for diesel, gasoline and jet gasoline in Asia hit a report excessive in June.
Graphic: Reliance’s June qtr revenue soars on strong refining margins and gasoline cracks
Consolidated income from the oil-to-chemicals enterprise – comprising the world’s greatest refining advanced at Jamnagar and petrochemicals crops – jumped 56.7% to 1.62 trillion rupees, its finest ever quarterly efficiency, the corporate mentioned.
Reliance, which produces fuel from an extremely deep water block within the nation’s east coast, mentioned it additionally benefited from a revision in native fuel costs and expects larger native costs from October.
India pegs its domestically produced fuel to international benchmarks.
V. Srikanth, joint chief monetary officer of Reliance, mentioned export taxes will limit India’s abroad gasoline gross sales and diminish realisation.
On July 1, India imposed the windfall tax on exports of gasoline, diesel and aviation gasoline after personal refiners turned to abroad gross sales to achieve from strong refining margins as an alternative of promoting at lower-than-market charges within the nation.
The authorities nonetheless later withdrew export tax on gasoline and minimize duties on different refined fuels as cracks eased.
The firm’s telecom unit, Jio, reported a close to 24% surge in internet revenue, whereas gross income at its retail unit, the nation’s greatest, soared 52%.
Reliance mentioned common income per person (ARPU), a key efficiency metric, for Jio through the quarter was at 175.7 rupees per subscriber per 30 days, a rise of 27% from a yr in the past.
Mukesh Ambani final month stepped down from the telecoms arm and handed the reins to his son Akash, setting the stage for a management transition at his enterprise empire.