Reliance Industries turns flat after hitting new high post Q2 results

Thus far in the calendar year 2017, RIL rallied 63% against 22% gain in the Sensex.

Reliance Industries (RIL) hit a new high of Rs 890, up 1.6% on the BSE in early morning trade, after the company reported a 12.5% increase consolidated net profit at Rs 8,109 crore for the second-quarter ended September 2017 (Q2FY18) on back of higher margins from its core refining and petrochemical businesses. The company had reported profit of Rs 7,206 crore in the same quarter of last fiscal year.

Consolidated revenue increased by 24% to Rs 101,169 crore during the quarter ending September as against Rs 81,651 crore in year-ago period.

Gross refining margin (GRM), the profit earned on each barrel of crude processed, was $12.0 for the quarter, outperforming the benchmark Singapore complex margins by $3.7 per barrel.

“Management expects GRMs to improve from here on, as there would be limited net refining capacity addition (0.8Mbpd as against an incremental demand growth of 1.4Mbpd in 2017). In Petchem, demand is expected to rise by 4% compared to a 3% increase in supply, which should help in supporting higher margins,” analyst at Emkay Global Financial Services said in a note.

“RIL Q2FY18 result came as a mixed bag where EBITDA (earnings before interest, tax, depreciation and amortization) was above expectation on the back of strong profits from petrochemical division, partially offset by disappointing refinery profit while net profit was below estimates due to interest expense,” IDBI Capital said in Q2FY18 result review.

Reliance Jio surprised with positive EBIT (earnings before interest and tax) in Q2FY18 led by higher ARPU (average revenue per user) of Rs 156.4/month owing to one time conversion charges and higher subscriber base of 138.6 million, added report.

At 12:00 PM; the stock was trading 0.6% lower at Rs 871 on BSE, as compared to 0.73% rise in the S&P BSE Sensex. Thus far in the calendar year 2017, it rallied 63% against 22% gain in the benchmark index.