Reliance Industries Faces Market Slump Following Profit Decline

Shares of Reliance Industries Ltd dropped over 3% after the company reported a 5% decline in its June quarter net profit. Despite increased revenue from operations, lower fuel cracks and petrochemical margins impacted earnings. The net profit stood at Rs 15,138 crore, a 20% drop quarter-on-quarter.

Shares of Reliance Industries Ltd, India's most valuable company by market valuation, declined over 3% on Monday following a disappointing earnings report for the June quarter. The company saw a 5% drop in net profit, impacted by lower fuel cracks and petrochemical margins, despite gains in its telecom and retail businesses.

The blue-chip stock dropped 3.38% to Rs 3,004.25 on the BSE and 3.44% to Rs 3,003.25 on the NSE. Reliance Industries Ltd's consolidated net profit for the April-June period of the 2023-24 fiscal year stood at Rs 15,138 crore, or Rs 22.37 per share, compared to Rs 16,011 crore, or Rs 23.66 per share, a year ago.

The net profit was also down 20% quarter-on-quarter, compared to the record Rs 18,951 crore earnings in the preceding three months ending March 31. Revenue from operations rose 11.5% year-on-year to Rs 2.57 lakh crore but fell short of the Rs 2.64 lakh crore recorded in January-March 2024.