After announcing the earnings, Reliance Industries also announced the acquisition of the majority stake in Den Networks Limited and Hathway Cable and Datacom Limited.
Shares of Mukesh Ambani-led Reliance Industries plunged as much as 7% in the afternoon trade on Friday, after the company reported lower-than-expected July-September earnings on Wednesday. At 1.45 PM (IST), shares of the company were trading at Rs 1093.80, down 4.80% from their previous close, after touching an intraday low of Rs 1073.15 and an intraday high of Rs 1105.10 per share.
Meanwhile, benchmark indices BSE Sensex and NSE’s Nifty 50 declined over 1% on Friday, mainly dragged by market heavyweights Reliance Industries and Infosys. Selloff in housing finance companies and NBFCs shares also continued, despite the Reserve Bank of India announcing more steps to increase credit flow to such companies.
On Wednesday, Reliance Industries reported a net profit of Rs 9,516 crore, up 17% on-year but lower than street expectations. In the same quarter last year, RIL had reported an 18% on-year rise in net profit to Rs 9,459 crore. According to a Bloomberg poll, RIL’s consolidated net sales were expected to come in at Rs 1.41 trillion; net profit was estimated at Rs 9,630.20 crore by 10 brokers. Revenue of the company also increased by 54.5% to Rs 156,291 crore ($ 21.6 billion).
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After announcing the earnings, Reliance Industries also announced the acquisition of the majority stake in Den Networks Limited and Hathway Cable and Datacom Limited. Hathway will issue 90.8 crore shares to Reliance Jio at Rs 32.35/share. RIL’s announcement came a few days after the conglomerate refused to comment on the development and called the news of its plan to acquire Hathway “media speculation and rumours”.
RIL had recently announced a five-year content syndication deal between its video streaming platform JioTV and Star India, which enabled Jio users to watch live sports via Hotstar easily. Reliance Jio, on the other hand, collaborated with largest lender DBI in August to provide next-generation experience with an exclusive digital-banking partnership by integrating SBI YONO with MyJio.