View: Reliance’s shop window distorts India view

MUMBAI, Jan 25 (Reuters Breakingviews) – Reliance Industries reflects India’s recovery, but only like one of those flattering mirrors in a shop changing room. Activity ticked up at all the main business units of the $185 billion conglomerate as consumers in the world’s fifth-largest economy emerged from a long lockdown. It shows an encouraging picture, albeit one distorted by some financial engineering by boss Mukesh Ambani.

The company’s top line grew 7.4% in the fourth quarter to 1.4 trillion rupees ($18.9 billion) from the previous three months. Revenue at the fashion and lifestyle business is back up to pre-pandemic levels. Electronics stores enjoyed strong festive sales. And its four-year-old telecom service now counts more than 400 million subscribers, with average revenue per user rising, too. Reliance’s consumer businesses account for half of EBITDA, up from 37% a year earlier. Elsewhere, demand for its oil products was back to normal in December.