Reliance Industries’ revenue from operations was down 5.2 per cent year-on-year at Rs 2.07 trillion in June quarter, which the management attributed to a sharp decline in the O2C revenues with a 31 per cent decrease in crude oil prices
Shares of Reliance Industries fell nearly 3 per cent to hit a low of Rs 2,469.55 on the Bombay Stock Exchange (BSE) in Monday’s intra-day trade after investors booked profit. The company reported lower-than-expected April-June quarter results for FY24, with a 10.8 per cent year-on-year (YoY) decline in its consolidated net profit of Rs 16,011 crore owing to weak profitability seen in the oil-to-chemicals business.
The stock has slipped over 5 per cent in the last two trading days. It had touched a record high of Rs 2,635.17 (adjusted to demerger of Jio Financial Services ) on 19 July. However, the shares witnessed some recovery and were trading 1.66 per cent down at Rs 2,495.95 at 11:13 AM.
In the April-June quarter, Reliance Industries’ revenue from operations was down 5.2 per cent year-on-year at Rs 2.07 trillion, which the management attributed to a sharp decline in the O2C revenues with a 31 per cent decrease in crude oil prices. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter, the company said, was Rs 41,982 crore, up 5.1 per cent.
The company reported an 11 per cent drop in its net profit, largely due to a weak oil-to-chemical vertical and higher interest and depreciation cost. Its net profit stood at Rs 16,011 crore, or Rs 23.66 earnings per share (EPS), in April-June quarter as against Rs 17,655 crore in the year-ago period.
After the earnings, Nuvama recommended a ‘Buy’ with a target price of Rs 3,088, while Goldman Sachs also took a ‘Buy’ view with a target price of Rs 2,725. However, Kotak Institutional Equities downgraded the scrip to ‘Add’ while putting the target price at Rs 2,700.