Reliance logo.
Credit: PTI Photo
New Delhi: Shares of Reliance Industries Ltd declined over 1 per cent in morning trade on Tuesday after the firm reported a 5 per cent fall in the July-September quarter net profit.
The bellwether stock went lower by 1.15 per cent to Rs 2,713.55 on the BSE.
At the NSE, it dipped 1.13 per cent to Rs 2,713.80 apiece.
Reliance Industries Ltd, India's most valuable company, on Monday reported a 5 per cent fall in the July-September quarter net profit as weak oil refining and petrochemical business hurt operational 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 Rs 17,394 crore or Rs 25.71 a share in the same period a year back, according to a company statement.
While retail and telecom businesses posted steady performance, the oil-to-chemical (O2C) business, which is made up of twin oil refineries at Jamnagar in Gujarat and petrochemical units saw margins shrink on global oversupply.
The profit before tax (EBITDA) dropped 2 per cent to Rs 43,934 crore. The financial performance was also impacted by finance costs rising by 5 per cent to Rs 6,017 crore, primarily due to higher debt. Also, depreciation rose by 2.3 per cent.
Its cash cow O2C performance was hurt by a global oversupply due to China flooding the market with petroleum products it made from refining cheap Russian crude oil. This led to a fall in product margins.
On the other hand, the firm's other two main businesses - retail and telecom - saw steady performance.