India's Reliance Posts Profit Rise, Plans To Invest $9B

"We are taking what the government is saying very seriously that they will take a decision on gas pricing by Nov. 15," Agarwal said.

Reliance has been dogged by an inability to stop a decline in its domestic oil and gas output and by investor concerns about its earmarked investment of $11.7 billion into fourth-generation (4G) telecoms service, which has yet to be launched.

Looking At E-Commerce

Reliance reported stand-alone profit of 57.42 billion rupees, excluding its interests in retail and some smaller businesses, exceeding an average forecast of 56.34 billion from analysts polled by Thomson Reuters I/B/E/S.

Revenue from its retail business, which posted its first annual profit in the previous fiscal year after six years of losses, rose 20 percent in the quarter from a year ago.

Reliance expects revenue from the retail business to grow by 25 to 30 percent annually and that e-commerce will be a part of its strategy going forward, Co-CFO V Srikanth said.

"There are some internal discussions that are happening ... E-commerce will clearly be a part of the retail strategy."

The company's upstream oil business posted its second straight quarter of double-digit revenue growth after three years of declines, boosted by a sharp 34 percent jump in revenue from its U.S. shale gas operations.


View Full Article


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.