Reliance Industries shares fall over 4%; m-cap drops by Rs 29,945 cr post Q2 results
Shares of Reliance Industries Friday ended over 4 per cent down, wiping out Rs 29,945 crore from its market valuation, despite the company reporting its highest ever quarterly net profit in the July-September quarter.
New Delhi: Shares of Reliance Industries Friday ended over 4 per cent down, wiping out Rs 29,945 crore from its market valuation, despite the company reporting its highest ever quarterly net profit in the July-September quarter.
The blue chip stock plunged 6.59 per cent to Rs 1,073.15 in intra-day trade on BSE. Later, it closed the day at Rs 1,101.65, a fall of 4.11 per cent. At NSE, shares of the company settled 4.42 per cent lower at Rs 1,100.30.
Due to the plunge in the stock price, the company's market valuation declined Rs 29,944.97 crore to Rs 6,98,278.03 crore on BSE. In terms of equity volume, 14.61 lakh shares of the company were traded on BSE and over 2 crore shares changed hands at NSE during the day. The stock was the biggest drag for the BSE benchmark index, which slumped 463.95 points to close at 34,315.63.
Reliance Industries Wednesday reported its highest ever quarterly net profit of Rs 9,516 crore in July-September as record earnings from petrochemical business and bumper earnings from retail business and telecom arm made up for a decline in refinery margins.
Watch this Zee Business video here:
The operator of the world's largest oil refining complex, however, saw pre-tax earnings from the business decline for the second quarter in a row. It fell 19.6 per cent to Rs 5,322 crore as margins dipped. In the first quarter the pre-tax earnings had fallen 16.8 per cent.
It earned USD 9.5 on turning every barrel of crude oil into fuel as compared to a gross refining margin of USD 12 per barrel. The GRM was also lower than USD 10.5 per barrel earning in first quarter.