Setting a new bar in the petrol and diesel sale, Reliance Industries Ltd registered an 11% growth rate in diesel and 15% in petrol sales. The company announced its earnings for the December quarter that was released recently.
The numbers’ significance can be understood by the fact that the diesel industry grew at just 0.2% while petrol at 7.1%. The Indian conglomerate has 1394 fuel retail outlets across the country – 518 of these are owned by the company and the rest are operated by dealers.
“Superior product mix and high asset utilisation underpinned strong earnings,” the company said in a presentation, adding that India’s oil demand grew 3.2% in October-December with petrol demand rising 7.1% and LPG surging by 15%. According to Reliance Industries, preference for petrol cars, improving road infrastructure and rural connectivity is driving petrol demand.
Reliance agreed to join hands with London-based BP plc by selling 49% of its petro retail business for ₹7,000 crore. Together, they planned to expand the fuel pump network across India. There are nearly 66,800 petrol pumps in the country out of which about 60,000 are owned by public sector retailers.
Talking about the net profit of Reliance Industries Ltd, it reported a total of ₹11,640 crore in the 3rd quarter of 2019-20 FY, its highest ever. The number is 13.55% higher than the company’s last year profit during the same period. Last year, RIL’s profit was ₹10,251 crore.
Although the petroleum business took the company to a new height of profit in 2019, it also benefitted from its telecommunication business – Reliance Jio. It is expected that the biggest Indian firm will grow with even greater pace in a couple of years, owing to multiple new tie-ups.