Reliance Industries (RIL) saw its profit rise by 18% to £2.13 billion in the March quarter on the back of strong performance by its oil-to-chemicals (O2C), digital services (Jio), retail and oil & gas businesses.
Profit would have been higher had it not been for the export tax on refined fuels.
According to RIL, the export tax on transport fuels, which took effect on July 1, 2022, reduced its profit by £71.1 million.
Due to increased momentum in the company's consumer sectors (retail and telecom), revenue increased 2% to around £22 billion, an indicator of fundamental business performance, operating profit rose 21% to £4.03 billion.
Though RIL diversified its business to retail and telecom and more recently to green energy, its O2C segment still accounts for 67% of its annual revenue (£89 billion) and 41% of its operating profit (£15 billion). “The O2C segment posted its highestever operating profit despite global uncertainties and disruptions in commodity trade flows,” RIL chairman and MD Mukesh Ambani said.
Operating profit of the O2C segment increased 14% to £1.62 billion in Q4FY23 due to lower feedstock costs. Whereas operating profit of digital (Jio) climbed 19% to £1.34 billion due to higher revenue and increase in margins.
Jio’s average revenue per user (ARPU) - a key metric that influences income - was at Rs 179 in Q4FY23, up 7%. ARPU is the total revenue of the telecom operator divided by the number of users on its network.