Reliance Industries, owned by billionaire Mukesh Ambani, reported a 4.77% drop in consolidated net profit for the quarter ending September 2024.
Benchmark equity indices Sensex and Nifty tumbled in early trade on Monday dragged down by Reliance Industries and cautious investors’ sentiment ahead of the US presidential elections and Federal Reserve interest rate decision. On Monday, 4th November 2024, shares of Reliance Industries Limited (RIL) witnessed a sharp decline of 4%, marking a nine-month low amid substantial selling pressure. This drop pushed the company’s year-to-date (YTD) returns into negative territory.
During intraday trading on the Bombay Stock Exchange (BSE), the RIL stock price fell by up to 4.03%, touching a low of Rs 1,285.10 per share. This decrease impacted the company’s market capitalization, which was reduced to approximately Rs17.40 lakh crore. Notably, the stock has now declined over 20% from its 52-week high of Rs 1,608.95 per share (adjusted for a 1:1 bonus) recorded on July 8.
Reliance Net Profit Declined
As of November 4, Reliance shares showed a decline of 0.5% for the year-to-date. However, on an annual basis, RIL stock has managed to deliver gains, registering a growth of over 11% in the past year.
The net profit for Q2FY25 stood at ₹16,563 crore, compared to ₹17,394 crore in the same quarter of the previous year. Despite the dip in profit, the total income for the quarter increased marginally by 0.65%, reaching ₹2,40,357 crore, up from ₹2,38,797 crore in the corresponding period last year.
EBITDA and Margins Analysis
The company’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) for Q2FY25 fell by 2% year-over-year, coming in at ₹43,934 crore. The EBITDA margin for the quarter stood at 17%, slightly below the 17.5% recorded during the same period last year.
Big Fall In Share Market
The BSE Sensex tumbled 665.27 points to 79,058.85 in early trade. The NSE Nifty tanked 229.4 points to 24,074.95. From the 30-share Sensex pack, Sun Pharma, Reliance Industries, Infosys, Tata Motors, Infosys, Titan, Maruti and NTPC were among the major laggards.
Mahindra & Mahindra, Tech Mahindra, HCL Technologies and IndusInd Bank were the gainers.Foreign Institutional Investors (FIIs) offloaded equities worth Rs 211.93 crore on Friday, according to exchange data.
Foreign investors pulled out a massive Rs 94,000 crore (around USD 11.2 billion) from the Indian stock market in October, making it the worst-ever month in terms of outflows, triggered by the elevated valuation of domestic equities and attractive valuations of Chinese stocks.
(With Inputs from PTI)