Reliance Industries Ltd (RIL) on Friday delivered a blowout performance in its core oil-to-chemical (02C) business — but analysts were expecting much more in a booming export market for transportation fuels.
The oil-to-telecom conglomerate saw its consolidated net profits rising 46.30 per cent to Rs 17,955 crore during the first quarter ended June 30 compared with Rs 12,273 crore a year ago. Analysts had estimated the bottomline would double because of the O2C business even as retail and telecom were expected to chip in with a good show. They had estimated a consolidated net profit of Rs 24,000-25,500 crore.
Though the Jio numbers for the quarter came in line with expectations as it fully benefited from the tariff hikes enforced earlier, the O2C business missed estimates. The O2C segment revenue shot up 56.7 per cent to Rs 1.6 lakh crore from Rs 1.03 lakh crore in the year-ago period, while the earnings before interest, taxes, depreciation and amortisation or EBITDA showed a rise of 63 per cent during the same period to Rs 19,888 crore from Rs 12,231 crore.
