RIL stocks slip down 2% as investors’ focus turns to earnings

As of 10.32 am, Reliance Industries Limited (RIL) traded at Rs 1,934 on BSE down by 2% from its previous closing. RIL’s scrip is trading lower for the fourth consecutive session. In intraday, the scrip fell as much as 2.95% to hit a low of Rs 1,915 a share.

On Friday, the company said it completed a fundraising programme by selling 10% stake in Reliance Retail Venture after which the shares of Reliance Industries Ltd fell 3% as investor focus turned to its earnings.

The company on Thursday informed exchanges that it has for time being completed inducting partners and raising funds for Reliance Retail Ventures. It got Rs 47,265 crore from financial partners and allotted a 10.09% stake to them.

Brokerage firm Macquarie Research on November 2 issued an underperform rating to RIL’s scrip with a price target of Rs 1,195, giving it a downside potential of 42%.

RIL in its second-quarter earnings reported a 15% decline in its net profit amid sharp fall in refining margin, weak retail and Jio operations.

Retail business margin improved sequentially to 4.9% from 3.4% but lower at 5.6% year-on-year due to a decline in revenues for the fashion and lifestyle, and consumer electronic segments. Further, petrochemicals margins improved quarter on quarter to 20.1% from 17.6% while volume also grew 9% at 9.7 mmt.

EBITDA (earnings before interest, taxes, depreciation, and amortization) at refinery business dipped to $3.7/bbl from $4.3/bbl. Its gross refining margin fell to $5.7 per barrel, a level it hasn’t seen since 2009.

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