Consumer business growth to offset refining woes: Reliance Industries

Deleveraging, profit upside from digital initiatives are major earnings drivers

Reliance Industries’ performance for the September quarter was a mixed bag, with its numbers missing the estimates of most brokerages. The Street, however, is not worried as digital services and retail segments are growing at a scorching pace. Though the consolidated revenue and operating profit growth were in single digits, the new businesses registered a revenue growth of 27-43 per cent while profit growth was 49-67 per cent.

The company is banking on this pace of growth to help it scale up the two businesses to account for half of the overall operating profit as compared to a 33 per