Reliance Industries shares jumped nearly 5 per cent on
Monday after the oil-to-retail conglomerate posted record quarterly
profit on the back of strong refining margins. RIL was the top Nifty
gainer in morning trade.
Controlled by billionaire Mukesh Ambani, Reliance Industries on Friday reported a 12.5 per cent jump in consolidated net profit to Rs 6,720 crore, even though plunging crude prices dragged revenue down by more than a third to Rs 75,117 crore.
Higher profits came largely from gross refining margins, which rose to $10.60 per barrel, the highest in seven years and up from $8.30 in the same quarter a year earlier.
RIL generates the bulk of its revenue from refining and petrochemicals, but it has been expanding into consumer businesses such as retail and telecom to aid growth. The company confirmed plans to launch its keenly awaited 4G telecommunication service by "around December".
Reliance Industries has spent more than $14 billion to date on telecom alone, and is spreading into fashion, grocery and online banking. Its telecom arm is building India's biggest fourth-generation (4G) broadband network and plans a December launch for its Jio brand.
The company's retail business achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time. RIL said its retail division will also sell its own brand of 4G LTE smartphones under the brand name LYF, pronounced "life".
Most brokers raised their earnings per share estimate after RIL's solid Q2. CLSA upped its FY16-17 EPS estimate by 3-6 per cent, while Kotak increased RIL's EPS by 3-8 per cent.
As of 09.39 a.m., RIL shares traded 4.2 per cent higher at Rs 959.50, outperforming the 0.24 per cent gain in the broader Sensex.
Controlled by billionaire Mukesh Ambani, Reliance Industries on Friday reported a 12.5 per cent jump in consolidated net profit to Rs 6,720 crore, even though plunging crude prices dragged revenue down by more than a third to Rs 75,117 crore.
Higher profits came largely from gross refining margins, which rose to $10.60 per barrel, the highest in seven years and up from $8.30 in the same quarter a year earlier.
RIL generates the bulk of its revenue from refining and petrochemicals, but it has been expanding into consumer businesses such as retail and telecom to aid growth. The company confirmed plans to launch its keenly awaited 4G telecommunication service by "around December".
Reliance Industries has spent more than $14 billion to date on telecom alone, and is spreading into fashion, grocery and online banking. Its telecom arm is building India's biggest fourth-generation (4G) broadband network and plans a December launch for its Jio brand.
The company's retail business achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time. RIL said its retail division will also sell its own brand of 4G LTE smartphones under the brand name LYF, pronounced "life".
Most brokers raised their earnings per share estimate after RIL's solid Q2. CLSA upped its FY16-17 EPS estimate by 3-6 per cent, while Kotak increased RIL's EPS by 3-8 per cent.
As of 09.39 a.m., RIL shares traded 4.2 per cent higher at Rs 959.50, outperforming the 0.24 per cent gain in the broader Sensex.
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