It was a muted June 2019 quarter for Reliance Industries (RIL) with consolidated profit growing just 7 per cent Y-o-Y to ₹10,104 crore. This growth too was thanks to the consumer-facing business that offset weakness in the core hydrocarbon segments.

Slow global growth that dented demand and new supplies that squeezed product margins took a toll on the hydrocarbon segments. The gross refining margin in the quarter fell to $8.1 a barrel from $10.5 in the year-ago period. Lower volumes and realisations saw the petchem segment’s profit fall about 4 per cent Y-o-Y.

 

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But consumer-facing businesses saved the day for RIL. Operating profit in the retail business was up 66 per cent Y-o-Y, thanks to store expansion in smaller cities. The operating profit of the digital services business, that includes RJio, grew nearly 80 per cent, aided by subscriber additions.

Value-unlocking, when it happens by the listing of the consumer businesses, can provide a good uptick to the RIL stock.

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