Reliance Industries gains 3% post Q3 results

The stock was up nearly 3% to Rs 954 on BSE in intra-day trade after the company reported a 25% rise in a consolidated net profit at Rs 94.23 billion for Q3FY18

Reliance Industries (RIL) was up nearly 3% to Rs 954 on BSE in intra-day trade after the company reported a 25% rise in a consolidated net profit at Rs 94.23 billion for the October-December 2017 quarter (Q3FY18) with higher profitability in petrochemicals and its telecom venture Jio. The company had profit of Rs 75.33 billion during the quarter ended December 2016.

The consolidated net revenue of the company increased by 25.7% in Q3FY18 to Rs 998 billion, as against Rs 794 billion during the corresponding period in 2016.

RIL’s telecom business, Jio, reported a net profit of Rs 5.04 billion, against a loss of Rs 2.71 billion reported in the September ended quarter.

“RIL Q3FY18 result came better than our expectation led by robust performance from its Petrochemicals, Retail and Jio, offset by slight disappointment from refinery. We are raising FY18/FY19 EBITDA by 10.7%/7.3% and EPS by 8%/7.8% to Rs 55.3/59.6 respectively. Therefore, we are raising our TP to Rs 1,100 from Rs 1,004. Maintain BUY,” analyst at IDBI Capital said in result review.

“We reiterate RIL rating of Accumulate with TP Rs 1,053. We remain positive on full commissioning of core sector projects and revenue visibility of telecom venture (Jio). We raise FY18E EPS by 12% and FY19E EPS by 5% on higher margins from petchem and higher telecom earning,” analyst at Elara Capital said in result update.

At 11:03 AM; RIL was trading 2% higher at Rs 948 on BSE, as compared to 0.25% rise in the S&P BSE Sensex. The stock quoting close to its all-time high of Rs 959 touched on November 24, 2017 in intra-day trade.

In past one month and three month, the stock underperformed the market by gaining 3% and 4%, respectively. On comparison, the S&P BSE Sensex was up 5% and 10%, respectively, during the same period.