Shares of Reliance Industries today settled for the day with losses of over 3 per cent on the bourses following which the market capitalisation of the company eroded by Rs 2,0004.96 crore.
Shares of the company opened on a weak note at Rs 984.70, then lost further ground and fell to an intra-day low of Rs 961.00. At the end of today's trading session the stock was quoted at Rs 963.10, down 3.18 per cent over its previous closing price.
Following the decline in the stock the market capitalisation of the company eroded by Rs 20004.96 crore to Rs 6,10,134.46 crore.
On the NSE, the stock opened at Rs 982, then fell to an intraday low of Rs 960 and finally settled for the day at Rs 963.50, down 3.29 per cent.
On April 27, Reliance Industries today reported its highest quarterly net profit of Rs 9,435 crore. While its core petrochemical business posted record quarterly pre-tax profits, earnings from the oil refining business dipped on squeeze in margins.
The stock of Reliance Industries was the second largest loser in the 30-share index.
Meanwhile, global credit rating agency Moody's Investors Service today said robust earnings posted by Reliance Industries in the fiscal year ending March 31 will improve its credit metric, but high cash outflow on capital spending will constrain rating.
Reliance Jio Infocomm (RJIL) "continues to generate negative free cash flow, in line with our expectations," it said in an issuer comment on RIL.
Even though the company's reported net debt increased to Rs 1,40,700 lakh crore as of March 31, 2018, compared to Rs 1,19,400 crore a year ago, its credit metrics as measured by net debt/EBITDA declined to 1.9x for fiscal 2018 compared to 2.1x for fiscal 2017, it said adding the improvement in credit metrics is driven by higher earnings from its energy segment.
The company also plans to shut oil and gas production at its main fields in KG-D6 block in the coming months and begin complying with the government's guidelines for decommissioning facilities in the Bay of Bengal block where output has hit its lowest ever.
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