Reliance Industries Ltd. (RIL) on Friday reported a 6.8 per cent increase in its consolidated net profit for the quarter that ended on June 30 of the financial year 2019-20, on a year-on-year (YoY) basis.
Accordingly, the company's consolidated net profit (attributed to the owners of the company) during the first quarter of FY 2019-20 rose to Rs 10,104 crore, against Rs 9,459 crore reported during the corresponding period of the previous fiscal.
The company reported consolidated revenue of Rs 1,72,956 crore during the quarter under review, up 22.1 per cent from Rs 1,41,699 crore on a YoY basis.
According to the company, growth in revenue was led by a sharp increase in revenue from "Digital Services and Retail business", which recorded an increase of 55 per cent YoY and 48 per cent YoY respectively.
Besides, higher refinery throughput on a YoY basis contributed to the increase in revenue for the refining business.
On a standalone basis, the RIL reported a rise of 2.4 per cent on a YoY basis to Rs 9,036 crore from Rs 8,820 crore reported during the corresponding period of the previous fiscal.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "Our first-quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions. Our downstream businesses delivered resilient performance in an environment of slower demand growth and incremental supplies".
"The performance reflects the benefits of deep refining and petrochemicals integration, chain economics and feedstock flexibility."
Further Ambani, the company continues to make major strides in its retail and
digital services businesses led by a focus on growth markets with offerings in the right product segments and compelling value proposition.A
"We are pleased with the robust growth both in revenues and operating income for Reliance Retail. Our digital services business continues to transform the mobility market in India while scaling newer milestones," Ambani said.
Reliance retail's revenue for Q1 FY20 grew by 47.5 per cent YoY to Rs 38,196 crore as against Rs 25,890 crore in the corresponding period of the previous year.
Reliance Retail operated 10,644 stores across 6,700 plus towns and cities, with an area of 23 million sq.ft.
"Rapid store expansion particularly in Tier 3 or Tier 4 markets, stronger value proposition and catchment focused assortment have been key drivers for robust growth in the retail business," the company said in a statement.