Reliance Share Price: Shares of Reliance Industries Ltd fell over 1 per cent in morning trade on Tuesday after the company reported a 5 per cent drop in net profit for the July-September quarter.
The leading stock was down 1.15 per cent at Rs 2,713.55 on the BSE.
To the JAN fell 1.13 percent to Rs 2,713.80 apiece.
Reliance Industries Ltd, India’s most valuable company, on Monday reported a 5 percent drop in net profit for the July-September quarter as weakness in the petrochemical and oil refining business hit operating performance.
Its consolidated net profit fell to Rs 16,563 crore or Rs 24.48 per share in July-September, the second quarter of the current fiscal, compared to Rs 17,394 crore or Rs 25.71 per share in the same period of the year. above, according to one company. statement.
While the retail and telecom businesses recorded stable performance, the oil-to-chemicals (O2C) business, which comprises of twin oil refineries at Jamnagar in Gujarat and petrochemical units, saw its margins shrink due to excess overall offer.
Profit before tax (EBITDA) fell 2 percent to Rs 43,934 crore. Financial performance was also affected as finance costs increased by 5 per cent to Rs 6,017 crore, mainly due to higher debt. Furthermore, depreciation increased by 2.3 percent.
Its O2C performance, a cash cow, was hit by a global oversupply as China flooded the market with petroleum products it made by refining cheap Russian crude oil. This caused a drop in product margins.
On the other hand, the company’s two other core businesses, retail and telecommunications, posted stable performance.
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