RIL shares up almost 4% post Q1 earnings

Nichole Vega
July 22, 2017

In Friday's flat market, the Reliance stock, which has been one of the main drivers of the sensex in 2017, closed a marginal 0.3% lower at Rs 1,529. The turnover in the quarter under review jumped by 73.6 per cent to Rs 11,571 crore against Rs 6,666 crore in the year-ago period.

On the NSE, it surged 8.62 per cent to touch its 52-week high of Rs 202.80. It also said its revenues from refining increased 18.3% to Rs 66,945 crore from Rs 56,568 crore during the year-ago period, while its revenues from petrochemicals business saw a almost 23% rise to Rs 25,461 crore from Rs 20,718 crore.

"Strong refining and petrochemicals margin environment contributed to higher operating profits for the quarter", RIL said in a press statement. He added that retail business revenue grew 74 per cent, while the company continues to build its digital services business.

On telecom business, RIL said Jio has become the fastest growing technology company in the world with more than 100 million subscribers in just 170 days.

"Over the past three to four years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses". Ramp-up of ethane import project has helped in diversifying feedstock sources and mitigating risks for our existing crackers at Dahej and Hazira.

Led by record gross refining margins (GRMs), Reliance Industries (RIL) posted 8.6% rise in standalone net profit for the quarter ended June 30, 2017, at Rs 8,196 crore, compared with Rs 7,548 crore in the same period of the previous fiscal.

According to the company, listing of the shares was expected to be completed by FY18, subject to regulatory approvals. As many as 39 companies have this year announced bonus shares.

"The board of directors at its meeting held on July 20, 2017, has chose to make a rights issue of 4 billion, 9% non-cumulative optionally convertible preference shares (OCPS) of Rs. 10 each for cash, at a premium of Rs. 40 per OCPS, aggregating to Rs. 20,0000 crore", it said.

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