Reliance Industries shares decline over 5 pc; mcap tanks Rs 69,702 cr

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New Delhi, Jan 25 (PTI) Shares of Reliance Industries Ltd on Monday declined over 5 per cent after the company reported a drop in earnings from the oil-to-chemical business on yearly basis.

The index heavyweight opened the day on a positive note but failed to hold the ground and slipped 5.36 per cent to close at Rs 1,939.70 on the BSE. During the day, it tanked 5.73 per cent to Rs 1,932.20.

On the NSE, it declined by 5.58 per cent to close at Rs 1,935.15.

Its market valuation also tumbled Rs 69,702.15 crore to Rs 12,29,661.32 crore on the BSE. With this, the company lost the title of the most valued domestic firm by market valuation to Tata Consultancy Services.

In traded volume terms, 13.46 lakh shares were traded on the BSE and over 2.50 crore shares on the NSE during the day.

The company was the biggest laggard among the 30-share BSE index components.

Reliance Industries Ltd on Friday reported a better-than-expected 12 per cent rise in December quarter net profit on improving oil-to-chemical business, strong continued momentum in retail and steady telecom unit Jio.

Consolidated net profit in October-December stood at Rs 13,101 crore, compared to Rs 11,640 crore net earning in the same period a year back, the company had said in a statement.

While oil-to-chemical or O2C business improved quarter-on-quarter, it was lower than year-ago earnings but this was more than made good by a spurt in consumer-facing businesses of telecom and retail which now contribute to 51 per cent of earnings as compared to 37 per cent a year back.

About 56 per cent of the pre-tax profit (EBITDA) of Rs 8,483 comes from Jio and Reliance Retail.

Net income increase was further aided by a 20 per cent year-on-year decline in finance expenses due to cash coming in the digital unit, Jio Platforms and Reliance Retail from Google/financial investors respectively. Revenue was down 18.6 per cent at Rs 1,37,829 crore.

Jio, the telecom arm, posted a 15.5 per cent quarter-on-quarter rise in net profit to Rs 3,489 crore as it added over 25 million subscribers and per user income rose to Rs 151 per month. It had 410.8 million subscribers at the end of December. PTI SUM BAL