India's Reliance posts 25pc rise in profits, Jio turns profitable

MUMBAI, Jan 20 (AFP): Indian oil-to-telecom conglomerate Reliance Industries on Friday beat analyst estimates to post a 25 per cent rise in consolidated net profit, aided by its telecom start-up Jio turning profitable within 17 months of its launch.

The Mumbai-based firm owned by India's wealthiest man, Mukesh Ambani, said consolidated net profit for the three months to December 31 rose to 94.23 billion rupees ($1.5 billion) from 75.33 billion rupees a year earlier for the same period.

A Bloomberg survey of nine analysts had projected the consolidated net profit at 84.96 billion rupees.

Meanwhile, Jio reported a profit of 5.04 billion rupees for the December-ended quarter.

"Jio's strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives," Ambani said in a statement.

Previously, the telecom services business had reported a loss of 2.71 billion rupees in the second quarter of 2017.

Reliance said in a statement that its gross refining margin, the profit earned from each barrel of crude, was down to $11.6 in the December quarter from $12 in the previous quarter.