Reliance Industries Shares Dip as Profit Falls Amidst Operational Challenges

Shares of Reliance Industries Ltd dropped over 1% after the company reported a 5% decline in net profit for the July-September quarter. The dip is primarily attributed to a struggling oil refining and petrochemical sector, offset partially by stable performances in retail and telecom sectors.

Shares of Reliance Industries Ltd fell over 1% in early trading on Tuesday after the company announced a 5% decline in net profit for the July-September quarter. The stock dropped to Rs 2,713.55 on the BSE and Rs 2,713.80 on the NSE.

The drop in profit is largely due to weak operational performance in the oil refining and petrochemical sectors. Reliance reported a consolidated net profit of Rs 16,563 crore, down from Rs 17,394 crore in the same period last year. This decline is attributed to global oversupply caused by Chinese production from cheap Russian crude, affecting margins in the oil-to-chemical business.

Despite these challenges, Reliance's retail and telecom sectors displayed steady performance, although higher finance costs and increased depreciation weighed on overall profitability. The company's profit before tax decreased by 2% to Rs 43,934 crore, impacted by a rise in finance costs due to increased debt.

(With inputs from agencies.)