The company's net profit for the quarter ended June 30 came in at 43.35 billion rupees ($542.57 million), compared with 35.01 billion rupees in the same period a year ago, Jio said in a regulatory filing.
Reliance Jio, the telecom arm of Mukesh Ambani conglomerate Reliance Industries, reported a 24% rise in quarterly net profit on Friday, as it added more subscribers.
The company’s net profit for the quarter ended June 30 came in at 43.35 billion rupees ($542.57 million), compared with 35.01 billion rupees in the same period a year ago, Jio said in a regulatory filing.
($1 = 79.8970 Indian rupees)
In the past few months, Reliance’s refining business was boosted as it secured cheaper Russian oil shunned by western buyers amid the ongoing war in Ukraine. It was then exporting at higher prices and pocketing a healthy profit. That benefit is now eroding.
Reliance Industries Ltd. has warned that a global recession can hurt oil refining margins, flagging the possibility of more pain ahead after the owner of the world's largest refining complex posted a lower-than-expected profit.
“Recession fears are overtaking oil market fundamentals, resulting in lower prices and margins,” Reliance’s Joint Chief Financial Officer V. Srikanth said in a post-earnings call Friday.
He added that while there has been a lot of spotlights on the windfall gains for oil refiners like Reliance, there are also several headwinds such as higher operating expenses due to soaring freight and input prices. Raw material costs jumped 76% in the June quarter.
The International Monetary Fund will cut its global economic growth outlook “substantially” in its next update later this month, according to Ceyla Pazarbasioglu, its director for strategy, policy and review. Surging food and energy prices, slowing capital flows to emerging markets, the ongoing pandemic and a slowdown in China are making it “much more challenging,” she said.
Crude oil prices have slipped in the past two weeks and if they fall this week, it will be the third weekly drop -- the longest run of declines this year -- primarily due to fears that a global slowdown may dampen demand for fuels.
In the past few months, Reliance’s refining business was boosted as it secured cheaper Russian oil shunned by western buyers amid the ongoing war in Ukraine. It was then exporting at higher prices and pocketing a healthy profit. That benefit is now eroding.
On July 1, India slapped a tax on fuel exports and crude oil production to tap windfall gains from surging prices, but slashed it this week. Srikanth said this tax will reduce fuel exports from the country.
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