On Monday, after shares of Reliance Industries Limited (RIL) sank 8.6 percent at closing due to a slump in its Q2 results and correction in oil prices, the company lost $11 billion in market cap. The stock saw its biggest decline in over seven months.
At the end of the day, RIL market cap fell to Rs 12.69 lakh crore from its previous close of Rs 13.52 lakh crore.
Late on 30 October, the refining-to-retail conglomerate reported a 15 percent fall in its September-ended quarter profit to Rs 9,570 crore ($1.3 billion) as transportation fuel demand slipped due to COVID-19. Its revenue fell 24 percent to Rs 1.16 lakh crore.
Under the leadership of billionaire Mukesh Ambani, the company has been actively working on reducing its dependence on oil refining and moving to consumer-based businesses. While RIL's gross refing margin (profit on refining one barrel of crude oil) fell to $5.7 per barrel in the third quarter of 2020-21 when compared to $9.4 a year ago, its profit from telecom business (Reliance Jio Infocomm) has nearly tripled over the same period.
The slip in share value was likely due to profit booking of the about 25 percent rally seen this year.