Shares of RIL dropped as much as 1.4 per cent in Monday's trade as Moody’s has lowered the credit outlook on Reliance Industries to ‘stable’ from ‘positive’ but retained the Baa2 ratings its long-term debt.
Moody’s said the country’s richest and most profitable company will see large cash outflow over the next 18 months towards paying back its creditors for the billions of dollars of capex it had incurred on telecom business as well refining and petrochemical expansions in the past few years.
Following a negative open at Rs 944 against the previous close of Rs 945.60, the company shares hit an intraday high of Rs 945 and a low of Rs 932. In terms of equity volume, 1.86 lakh shares were traded on the BSE.
At 1.30 pm local time, the shares were trading down by 0.91 per cent at Rs 937 on the BSE. On the NSE, the stock fell 0.83 per cent to Rs 937.50.
Reliance Industries Ltd, Mukesh Ambani’s oil-to-telecom conglomerate, had reported a consolidated net profit of ₹8,109 crore in the September quarter, a 12.5 per cent increase year-on-year, supported by record earnings in the petrochemicals business and high refining margins.
In the refining and marketing business, RIL’s mainstay, operating profit rose 10.8 per cent to ₹6,621 crore. The gross refining margin stood at $12 a barrel, a nine-year high.