RIL stocks in boom time

On July 18, the stock price of Reliance Industries has jumped by Rs 19.80 or 1.95 per cent to Rs 1031.90, and the company has hit day’s high of Rs 1039 and low was 1025.10. The company declared Q1FY17 results on July 15, after the market hours. In Q1FY17 Reliance Industries Ltd., has posted a better-than-expected 18.1 per cent rise in its June quarter net profit to Rs 7,113 core as against Rs 6,024 core in the same period of last year on higher margins from its core refining business.

However, revenue of RIL has fallen 13.4 per cent to Rs 71,451 crore against Rs 82,509 crore during the same period previous year. The slide in revenue is due to the 26 per cent decline in benchmark oil (Brent Crude) price, which averaged at USD 45.6 a barrel, compared to USD 61.9 in the corresponding period last year. Impact of lower prices was partially offset by higher volumes in refining and petrochemicals segments. The gross refining margin (GRM) is the difference of the total value of petroleum products of a refinery and the price of the crude oil, and indicates the profitability. The GRM for Reliance in the first quarter stands at USD 11.5 a barrel compared to USD 10.4 in the same quarter last year.

Reliance Industries Ltd., is a private sector company in India. The company is engaged in span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail and special economic zones.