Reliance Industries Sinks 4 Per Cent On Lower Than Expected June Quarter Profit

Reliance's consolidated net profit stood at Rs 17,955 crore, or Rs 26.54 a share, in April-June compared to Rs 12,273 crore, or Rs 18.96 per share, a year ago

Reliance Industries on Monday at 12 pm was trading at Rs 2424 per share, down 3.14 per cent on the BSE. ( Image Source :AFP )

Oil-to-telecom conglomerate Reliance Industries’ (RIL) shares declined nearly 4 per cent in early morning trade on Monday after the company’s June quarter earnings failed to enthuse investors, the PTI reported.

RIL, the market heavyweight stock, fell 3.95 per cent to Rs 2,404 apiece on the BSE, after a weak start early in the trade. On NSE, it went lower by 3.98 per cent to Rs 2,403.35 apiece.

The fall in RIL shares were instrumental in dragging down the key domestic benchmark indices – BSE and NSE.

At 12 pm, the 30-share BSE benchmark was trading 384 points (0.66) per cent lower at 55,699, while the broader NSE Nifty was at 16,603, down 115 points (0.69 per cent).

Reliance on Monday at 12 pm was trading at Rs 2424 per share, down 3.14 per cent on the BSE.

“RIL's results, though impressive on the telecom and retail front, fell slightly below expectations in the refining space,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

Mukesh Ambani-led company’s consolidated net profit stood at Rs 17,955 crore, or Rs 26.54 a share, in April-June compared to Rs 12,273 crore, or Rs 18.96 per share, a year ago. Sequentially, net profit was up 11 per cent but lagged analyst estimates who had factored that the company would have captured the biggest discount available on Russian crude and exported all fuel when margins peaked.

Meanwhile, Jio, the telecom arm of RIL, on Friday clocked a standalone net profit of Rs 4,335 crore in the quarter ended June 30, 2022. The telco had earned a profit after tax (PAT) of Rs 3,501 crore in the same quarter last year. The company has logged growth of 23.82 per cent.

The net profits of Jio have soared throughout the year. In Q4FY22, the company's figures stood at Rs 4,313 crore, up 23 per cent year-on-year (YoY).