Mumbai: Shares of Reliance Industries Ltd today soared by over 6% in early trade after the company reported 24% jump in the third quarter net profit, the first increase after four quarters of declining returns, on the back of record earnings from oil refining business. Buoyed by the impressive numbers, shares of the company opened higher and further gained 6.21% to Rs.954.80—its 52-week high on the BSE.
On NSE, the stock zoomed 6% to a one-year high level of Rs.955.
The scrip was the top gainer among the bluechips on both benchmark indices — Sensex and Nifty.
“Reliance Industries’ top-line as well as bottom-line were above our estimates on account of higher than expected profitability from refining segment,” said Bhavesh Chauhan, senior research analyst at Angel Broking. Net profit in October-December at Rs.5,502 crore was 23.9% higher over Rs.4,440 crore in the same period a year ago, RIL had said in a statement on Friday. The better-than-estimated quarterly profit came on the back of rise in earnings from turning crude oil into petrol, diesel and other petroleum products.
RIL, which operates the world’s biggest refining complex at Jamnagar in Gujarat, earned $9.6 on turning every barrel of crude oil into fuel in the quarter, compared to $6.8 per barrel gross refining margin in the same period a year ago.
Sales were up over 10% to Rs.96,307 crore.
At 11:45 am, the company’s shares surge 3.83% to Rs.933.40 per share on Monday on the BSE.
In the broader market, the BSE barometer Sensex was trading at 20,109.80, up 0.35% at 11:45 am.