Reliance Industries shares slump 7% post Q2 results

Shares of Reliance Industries Friday slumped 7 per cent despite the company reporting its highest ever quarterly net profit in the July-September quarter.

The stock opened lower and declined further by 6.59 per cent to Rs 1,073.15 on BSE.

At NSE, shares of the company dived 7 per cent to Rs 1,070.25.

In terms of equity volume, 10.50 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the morning trade.

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.

The operator of 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.

The oil-to-telecom conglomerate also announced an acquisition of majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for Rs 5,230 crore to bring under its fold 27,000 local cable operators who would help strengthen its rollout of fibre-based broadband service to households for offering ultra high definition entertainment on large screen TVs.