Reliance Industries Sees Decline in Q1 Profit Amidst Petrochemical and Fuel Margin Struggles

Reliance Industries Ltd reported a 5% drop in its June quarter net profit due to lower fuel and petrochemical margins. The company's consolidated net profit was Rs 15,138 crore, down from Rs 16,011 crore a year ago. The decline was offset by gains in telecom and retail sectors.

Reliance Industries Ltd, India's most valuable company, reported a 5% decline in its June quarter net profit, addressing pressures from lower fuel and petrochemical margins. The consolidated net profit for the oil-to-retail-to-telecom giant stood at Rs 15,138 crore, compared to Rs 16,011 crore in the same period last year.

This quarter's results highlighted the substantial impact of lower transportation fuel cracks, particularly gasoline, and reduced chemical margins. The firm also faced higher depreciation costs, which weighed heavily on profitability. Despite these challenges, Reliance noted positive developments in its consumer businesses, including retail and telecom.

Remarkably, Jio became the largest telecom operator globally in terms of data traffic, thanks to increased 5G usage. Retail also performed steadily with higher footfall. Chairman Mukesh Ambani underscored the company's diverse business portfolio as the key to mitigating challenges and achieving robust performance in consumer and upstream oil and gas sectors.

(With inputs from agencies.)