Stock of RIL falls after its Q2 results

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Stock of RIL falls after its Q2 results
Reliance Industries, the largest private sector conglomerate reported a 16% rise in its net profit year-on-year (y-oy) for the quarter ended on September 30 on account of higher refining margins. The stock fell on Monday on BSE over its unsatisfactory results.

The net profit of the conglomerate was in line with the expectations of the various analysts. It's net profit rose from Rs 4,923 crore a year earlier to Rs 5,703 crore this quarter.

RIL's net turnover grew by 36.7% at Rs 78,569 crore against Rs 57,479 crore a year earlier.

It's other income rose from Rs 672 crore a year earlier to Rs 1,012 crore for Q2 FY12.

There was a fall in its production of crude oil and natural gas by 42.1% and 20.3%, respectively, mainly 'due to reservoir complexity,' the company said in press release.

While, it achieved a record in its refining and marketing business. Its segment revenues grew by 37.1% y-o-y from Rs 49,672 crore a year earlier to Rs 68,096 crore this quarter.

Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said in press release, “The increase in profits was largely driven by improved performance in the refining and petrochemicals business.”

“All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110%. RIL has strong balance sheet and sustained earning base to pursue growth opportunities,” he added.

Shares of the company were seen down by 30 points or 3.47% at 836.70 around 11:30 am IST.

The company's revenues fell from the previous quarter to Rs 78,569 crore. For the quarter ended June 30, the revenues were Rs 81,018 crore.

Also, CLSA, the most highly rated equity brokers, downgraded RIL to “outperform” from “buy” stating its disappointing results.

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