OwlBrief

Stay informed, stay wise!

5 briefs. 30 seconds. Before your coffee gets cold. OwlBrief distills global news, expert analysis, and trusted research into quick, reliable insights.

Create account Log in
Home My Activity
#Markets
Economic Times
Economic Times
1y ago 37 views

Reliance Q1 Earnings: Net Profit Falls by 5% YoY to Rs 15,138 Crore, Revenue Increases by 12%

Reliance Industries reported a 5% year-over-year decline in its net profit for the first quarter, amounting to Rs 15,138 crore. Despite the dip in profit, the company's revenue surged by 12%, reaching Rs 1.67 lakh crore. The drop in profit was attributed to higher expenses and a weaker performance in the oil-to-chemicals business. However, the growth in revenue was driven by strong performance in the retail and telecom sectors.
Reliance Q1 Earnings: Net Profit Falls by 5% YoY to Rs 15,138 Crore, Revenue Increases by 12%
A What happened
Reliance Industries reported a 5% year-over-year decline in its net profit for the first quarter, amounting to Rs 15,138 crore. Despite the dip in profit, the company's revenue surged by 12%, reaching Rs 1.67 lakh crore. The drop in profit was attributed to higher expenses and a weaker performance in the oil-to-chemicals business. However, the growth in revenue was driven by strong performance in the retail and telecom sectors.
★

Key insights

  • 1

    Decline in Profit

    Reliance Industries reported a 5% year-over-year decline in profit after tax (PAT) to Rs 15,138 crore. This decline is attributed to increased expenditures and other operational costs.

  • 2

    Revenue Growth

    Despite the decline in profit, the company's revenue jumped by 12%, reaching Rs 2,31,132 crore. This growth was primarily driven by the strong performance in the retail and telecom sectors.

  • 3

    Retail and Telecom Sectors

    Reliance's retail and telecom businesses showed significant performance improvements, contributing to the overall revenue growth. The company continues to expand its reach in these sectors.

  • 4

    Operational Costs

    Increased operational costs, including higher depreciation and amortization expenses, played a significant role in the decline in PAT. The company is likely to focus on optimizing these costs moving forward.

Takeaways

Reliance Industries' Q1 results highlight a mixed performance with a decline in profit but a substantial increase in revenue. Strong performance in the retail and telecom sectors offset the impact of higher operational costs. The company will likely focus on cost optimization to improve profitability in the coming quarters.