- By Aditya Pratap Singh
- Tue, 15 Oct 2024 12:25 PM (IST)
- Source:JND
Relaince Share price: Shares of Reliance Industries Ltd fell by more than 1 per cent in early trade on Tuesday after posting a 5 per cent drop in net profit for the July-September quarter. On BSE, the Reliance Shares fell 1.15 per cent to Rs 2,713.55, while on NSE, the stock fell 1.13 per cent to Rs 2,713.80 apiece. Reliance Industries Ltd, India's most valuable company, reported a 5 per cent drop in net profit for the July-September quarter on Monday, as weak oil refining and petrochemical businesses hurt its operational performance.
The company said its adjusted net profit fell to Rs 16,563 crore or Rs 24.48 per share in July-September - the second quarter of the current financial year.
While the retail and telecom businesses performed steadily, the oil-to-chemicals (O2C) business, which comprises twin oil refineries and petrochemical units in Jamnagar, Gujarat, saw margins decline due to global oversupply. Profit before tax (EBITDA) fell 2 per cent to Rs 43,934 crore. Financial expenditure rose 5 per cent to Rs 6,017 crore, mainly due to higher debt. Depreciation also increased by 2.3 per cent.
The company's cash cow O2C business was hurt by global oversupply as China flooded the market with petroleum products made by refining cheap Russian crude. This reduced product margins. On the other hand, the firm's other two core businesses - retail and telecoms - performed steadily.
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