Reliance Industries (RIL) fell over 2% after the company's consolidated finance cost jump to Rs 25.66 billion as against Rs 5.56 billion in the last quarter of 2016-17, and Rs 21 billion in the December 2017 quarter.
The company reported a consolidated net profit of Rs 94.35 billion for the quarter ending March 31 (Q4) on the back of improved performance of its petrochemical and retail businesses. The profit was largely in line with the estimates and represents a 17.3 per cent increase over Rs 80.46 billion reported in the year ago quarter.
Earnings from the refining and marketing business took a hit, with a 10.9 per cent year-on-year decline in its earnings before interest and taxation (EBIT) for the March 2018 quarter. The company said, the fall was largely on account of reduced crude throughput and adverse move in Brent-Dubai crude oil price differentials.
According to Amar Ambani, head of research at IIFL, "Future outlook for refining and petrochemical segments look upbeat as the company ramps up off gas cracker and commences operations of petcoke gasifiers. We are raising estimates for retail and petrochemicals segment, while we maintain our forecasts for refining segment."
The company also announced that it plans to shut oil and gas production at its main fields in KG-D6 block in the coming months and begin complying with the government's guidelines for decommissioning facilities in the Bay of Bengal block where output has hit its lowest ever.
At 9:35 am, the scrip was trading at Rs 975, down 2.09% as compared to 0.5% rise in the S&P BSE Sensex. It hit a high and low of Rs 992 and Rs 975 respectively till now.