RIL share price falls over 3% today as Mukesh Ambani-firm’s highest ever profit fails to amuse brokerages

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Published: April 30, 2018 10:54:17 AM

RIL share price today: Shares of oil-to-telecom conglomerate Reliance Industries Ltd (RIL) fell more than 3% in the morning deals on Monday even after the Mukesh Ambani-controlled enterprise reported the highest ever quarterly profit for the January-March period of the fiscal year 2017-2018.

RIL share price tanked 3.52% to a day’s bottom of Rs 961.2 on NSE on Monday. (Image: Express Photo)

RIL share price today: Shares of oil-to-telecom conglomerate Reliance Industries Ltd (RIL) fell more than 3% in the morning deals on Monday even after the Mukesh Ambani-controlled enterprise reported the highest ever quarterly profit for the January-March period of the fiscal year 2017-2018. RIL share price was among the biggest losers on the BSE Sensex on Monday following the mixed reaction from the leading brokerages post Q4 results. RIL share price extended losses in the wee hours of trading after opening down over 1% at Rs 984.7 on BSE on Monday.

The research and brokerage firm Jefferies said the petrochemical and refining segments missed the estimates slightly in the reporting quarter. With rich valuations and ROCE (Return on Capital Employed) modest, Jefferies rated the stock “underperform” with a target price of Rs 790 per equity share. According to an analyst of Motilal Oswal, the renewed focus on competition in form of downward revisions in price plans led to an11% quarter on quarter fall in the ARPU (Average Revenue Per User) to Rs 137.

While, on the other hand, the leading brokerage firm Nomura said that petrochemical growth strengthened further with marginally weaker refining as large capex (capital expenditure) cycle has largely ended. Following the uptick of about 21% in the consolidated earnings for FY18, Nomura maintained ‘buy’ with a target price of Rs 1,220 per equity share.

Tracking the first Q4 earnings reaction, RIL share price tanked 3.52% to a day’s bottom of Rs 961.2 on NSE while the stock shed as much as 3.38% to a day’s low of Rs 961.1 on BSE on Monday. With a steep plunge in the RIL share price, about Rs 21,380.43 crore was wiped out from the market capitalisation of Reliance Industries Ltd. As per the day’s low price on Monday, RIL held a market capitalisation of Rs 6,08,804.65 crore as against a market capitalisation of Rs 6,30,185.08 crore.

Earlier on Friday last week, Reliance Industries posted its highest quarterly net profit of Rs 9,435 crore on record earnings from petrochemical and retail business with a sustained rise in profitability of the latest telecom venture Reliance Jio Infocomm Ltd. Reliance Industries Ltd’s consolidated net profit grew by 17.3% to Rs 9,435 crore for the fourth-quarter ended 31 March 2018 as compared to Rs 8,046 crore in the January-March period of the last financial year.

For the full fiscal year 2017-2018, Reliance Industries posted a highest ever net profit of Rs 36,075 crore, up by 20.6% from Rs 29,901 crore net profit in the financial year 2016-2017. Whereas, Reliance Jio Infocomm reported a net profit of Rs 510 crore. Along with the quarterly earnings release, Reliance Industries announced a dividend of Rs 6 per equity share.

Commenting on the financial performance, Mukesh Ambani, Chairman, Reliance Industries Ltd said, “FY 2017-18 was a landmark year for Reliance where we established several records on both operating and financial parameters. Reliance has become the first Indian company to record PBDIT of over $10 billion with each of our key businesses – refining, petrochemicals, retail and digital services achieving record earnings performance.”

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