(Reuters) -Reliance Industries reported a better-than-expected third-quarter profit on Thursday, helped by strong demand in its retail segment, and as higher telecom tariffs and a rise in 5G subscribers boosted the telecom unit.
The Mukesh Ambani-led conglomerate’s consolidated net profit grew 7.4% to 185.40 billion rupees ($2.14 billion) in the quarter ended Dec. 31.
Analysts had expected, on average, 180.38 billion rupees, as per data compiled by LSEG.
Reliance Jio Infocomm, its telecom arm, reported a 24.4% rise in quarterly profit at 64.77 billion rupees, as it continues to benefit from tariff hikes initiated last year and as subscribers upgraded to 5G services, Reliance Industries said. The conglomerate’s retail unit, its second-biggest revenue driver, reported a near 7% rise in revenue to 795.95 billion rupees, as demand soared in a quarter that aligns with India’s festive season and accounts for the bulk of retailers’ annual sales.
The retail business ably capitalised on the pick-up in consumption amid festive demand during the quarter, Mukesh Ambani, chairman, Reliance Industries said in a statement.
Revenue from its oils-to-chemicals (O2C) operations, which accounts for about two-thirds of the overall revenue, rose 6% to 1.5 trillion rupees in the quarter as production climbed.
($1 = 86.5790 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Shreya Biswas and Janane Venkatraman)
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