India’s biggest company has reported disappointing earnings. Mukesh Ambani’s Reliance Industries posted its fourth quarter results after markets closed on Thursday. Net profit climbed 14.1% to Rs5,376 crore. And net sales went up 26% to Rs72,674 crore.
But while RIL’s numbers all showed growth, they remained below street estimates. Part of the problem was a poor showing from RIL’s hydrocarbons businesses. Production growth at its gas blocks is slow and the firm’s refining operations are not as profitable as expected. Gross refining margin in the quarter was $9.20 per barrel compared to $7.50 per barrel in the same period last year. Meanwhile, with expectations high before the release of the earnings, shares of RIL raced up 1.39% on the BSE to 1039.95.
Meanwhile, India’s biggest I-T firm has done much better. Quarterly earnings from Tata Consultancy Services on Thursday beat all expectations. The company’s net profit jumped 23% to Rs2,402 crore. And revenues increased to Rs10,157 crore.
Despite the positive numbers there are hitches. TCS saw its profit margin fall 153 basis points during the quarter to 23.7%.
Stocks of the firm tumbled 2.23% on the BSE to finish at 1191.65.
On the economy, food inflation is picking up pace once again. India’s food price index shot up 8.74% in the period to 9 April. The previous week it increased by 8.28%. This is the first acceleration in food inflation for four weeks. Data showed rising prices of fruits were the main culprit.