Reliance Industries plunges 2% despite profit in Q4, here is why

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New Delhi | Updated: April 25, 2016 4:29:37 PM

Reliance Industries (RIL) shares fell as much as 2.50 per cent in the morning trade despite the company reporting its highest quarterly net profit in over eight years

Reliance Industries shares RILReliance Industries (RIL) shares fell as much as 2.50 per cent in the morning trade despite the company reporting its highest quarterly net profit in over eight years (Reuters)

Reliance Industries (RIL) shares fell as much as 2.50 per cent in the morning trade despite the company reporting its highest quarterly net profit in over eight years as fall in oil prices boosted refining and petrochem margins, helping the company post a 16 per cent jump in earnings for the three-month period ended March 31.

The company also said the firm will increase the capital expenditure by Rs 30,000 crore this fiscal to complete ongoing refining and petrochem projects as well as for the telecom business.

Markets analysts cite worries after Reliance said capex would rise to a higher-than-expected $19 billion in fiscal 2017, due to downstream operations and spending on upcoming launch of 4G services

Company also said its Jio telecom service may be delayed to the second half of 2018, but gave no reasons.

Reliance further said that its petrochemicals expansion project in the northern state of Gujarat is delayed by two quarters to Q4FY17.

Later, the scrip closed 2.18 per cent down at Rs 1,016.15.

(With inputs from Reuters)

 

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