Reliance Industries (RIL) hits a fresh over nine-year high of Rs 1,578, up 3% on the National Stock Exchange (NSE), inches closer to its record high, after the company reported a better-than-expected 28% year on year (Y-o-Y) jump in its consolidated net profit at Rs 9,108 crore in June quarter (Q1FY18) on improved performance in the refining and petrochemicals business. The company had reported a net profit of Rs 7,113 crore in the same period a year ago.
The stock is Rs 71 or 4.5% away from its all-time high of Rs 1,649 touched on January 15, 2008, during intra-day trade. On BSE, the stock hit a lifetime high of Rs 1,626 on the same day.
“Our industry-leading portfolio of assets in the refining and petrochemicals business contributed to the considerable improvement in our earnings for the quarter,” Mukesh Ambani, chairman and managing director, RIL, said in a press statement.
RIL’s total income during the quarter under review rose 26% to Rs 92,661 crore from Rs 71,451 crore the same period a year ago. The company’s gross refining margins (GRM) were $11.9 per barrel at a nine-year high. It reported GRM of $11.5 per barrel in the corresponding quarter a year ago.
“RIL reports better-than-expected operating profit in Q1FY2018 on account of higher-than-expected gross refining margin (GRM) and petrochemical EBIT (earnings before interest and tax) margin. RIL commissioned the last crystallization train of the PX complex at Jamnagar, making RIL the second largest PX producer with 11% share in global PX production,” Sharekhan said in a stock update.
At 10:04 am; the stock was trading 3% higher at Rs 1,577 on NSE, as compared to 0.42% rise in Nifty 50. A combined 5.08 million shares changed hands on the counter on NSE and BSE so far.
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