Reliance Industries shares gain nearly 4%, hitting over 9-year high on strong Q1 earnings
Reliance Industries (RIL) stock closed at Rs1,586.20, up 3.76%, on Reliance JioPhone launch at the company's AGM
Mumbai: Shares of Reliance Industries Ltd (RIL) gained as much as 4.15%, hitting a fresh nine-and-half-year high, after the company posted strong earnings on better-than-expected gross refining markings and robust petchem earnings before interest and taxes (Ebit).
The company will hold an annual general meeting on Friday after 11am and analysts believe that it is expected to shed some light on the plans to expand fuel retail outlets and telecom plans.
According to a Bloomberg report, the company already operates 1,500 fuel stations, and aims to dominate India’s highway fuel retail market with licences for another 3,500.
The stock hit a high of Rs1,592. Year-to-date, RIL gained 46.1%. The RIL stock closed at Rs1,586.20 on the BSE, up 3.76% from its previous close, while India’s benchmark Sensex index rose 0.39% to 32,028.89 points.
RIL on Thursday reported 28% increase in its net profit to Rs9,079 crore on higher-than-expected refining and petrochemicals margins and a one-time gain. Its revenue rose to Rs92,661 crore, an increase of 25.5%.
Gross refining margins was at $11.9 per barrel, while Petchem Ebit increased considerably by 43.7% year-on-year to Rs4,031 crore, driven by capacity expansion and resilient margins. According to RIL, its June quarter petchem Ebit margin was at an all-time high of 15.8%.
“Large capex cycle coming to an end; earnings already growing as petchem expansion projects have come online, and refining doing very well; Further growth likely as more refining/petchem capacity comes online and Jio also starts to deliver," said a Nomura report to its investors.
On 19 July, PTI reported that RIL is working on a strategy to sell 200 million 4G feature phones—likely to be priced at Rs1,000- ,500—in two years
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