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RELIANCE - Reliance Industries News Story

₹1328.65 -57.6  -4.2%

Last Trade - 10:29am

Sector
Energy
Size
Large Cap
Market Cap £95.15bn
Enterprise Value £113.14bn
Revenue £66.41bn
Position in Universe 1st / 3164

BUZZ-Reliance falls after weakness in petrochem business dents revenue

Mon 20th January, 2020 7:17am
** Shares of conglomerate  RELI.NS  fall as much as 2.25%
after Q3 revenue falls on weakness in petrochemical business
    ** Consolidated revenue from operations fell 2.5% to 1.57
trillion rupees 
    ** "During the quarter, lower than expected refining and 
petrochemicals profitability was a drag"- brokerage Prabhudas
Lilladher says in a research note  
    ** Gross refining margin for Q3 was $9.2 per barrel,
slightly lower than Q2 but better than a year earlier.
    ** Standalone profit before tax decreased by 1.8% to 117.54
bln rupees
    ** "The weakness was driven by tepid demand and new capacity
additions in both aromatic and polymer chains, and firmer
feedstock naphtha/ethane prices"- Nomura says with reference to
petrochemical business
    ** Q3 segment revenue for the petrochemicals business falls
19.1% to 369.09 bln rupees
    ** Consol net profit rose 13.5% to 116.40 bln rupees for the
quarter, above the previous quarter's record and also beating
analysts' average forecast of 114.32 bln rupees.  urn:newsml:reuters.com:*:nL4N29M36Z
    ** Co also says purchase of 20% stake in oil-to-chemical arm
by Saudi Aramco will take a "few months" to be finalized; Co had
earlier said it would sign a definitive agreement with Aramco by
March 2020
    ** 26 of 33 brokerages rate the stock "buy" or higher, 5
"hold" and 2 "sell" or lower; their median PT is 1750 rupees

 (Reporting by Philip George in Bengaluru)
 ((P.George@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6749 1609; Reuters Messaging:
p.george@thomsonreuters.net))
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