Reliance Industries Faces Profit Decline Amid Global Challenges

Reliance Industries Ltd reported a 5% decrease in net profit for Q2 2023, impacted by the weak oil refining and petrochemical sectors due to global oversupply. While retail and telecom businesses showed stability, debt and depreciation costs rose. The company's digital services and upstream segments demonstrated robust growth.

Reliance Industries Ltd, India's leading company, experienced a 5% drop in net profit for the July-September quarter, highlighting vulnerabilities in its oil refining and petrochemical segments. The decline was attributed to global oversupply, notably exacerbated by China's market influence.

The conglomerate's telecom and retail sectors, however, offered a silver lining, maintaining steady performance. While overall company income saw a slight increase, rising finance costs and depreciation added pressure. Notably, Reliance's telecom arm reported growth across key metrics, boosting Jio's EBITDA by 17.8% year-on-year.

Chairman Mukesh Ambani reaffirmed Reliance's strategic focus on digital domains and energy innovations, predicting these sectors to support continued resilience against global economic fluctuations. Retail expansions and the anticipated rollout of new energy initiatives aim to bolster future profitability.

(With inputs from agencies.)