RIL shares tank nearly 9%, Mcap tumbles over ₹1 lakh cr after Q2 earnings

Shares of Reliance Industries Ltd (RIL) on Monday tanked nearly 9% after the company reported a 15% drop in second-quarter net profit.

The stock tumbled 8.62% to close at ₹1,877.30 on the BSE. During the day, it tanked 9.46% to ₹1,860.

On the NSE, it declined by 8.61% to close at ₹1,877.45.

The company's market valuation also eroded by ₹1,19,721.68 crore to ₹12,69,437.32 crore on the BSE.

RIL was the top laggard among the Sensex and Nifty constituents.

In traded volume terms, 14.44 lakh shares were traded at the BSE and 4.58 crore units on the NSE during the day.

RIL on Friday reported a 15% drop in second-quarter net profit after a slump in core oil and chemicals business dragged down continued good showing in consumer-facing verticals such as telecom.

The earnings announcement came after the market close on Friday.

Net profit was attributable to owners at ₹9,567 crore in July-September compared with ₹11,262 crore a year back, Reliance said in a stock exchange filing.

The oil-to-telecom-to-retail conglomerate saw consumer-facing units doing well amid the lockdown easing but the core business continued to face pressure.

The firm's net addition of 7.3 million subscribers and per-user revenue rising to ₹145 helped the telecom business soar.

Digital services, which include the telecom arm Jio, saw pre-tax profit surge 53% to ₹8,345 crore as revenues soared by more than one-third.

Petrochemicals revenue fell 23% to ₹29,665 crore and pre-tax profit dropped 33% at ₹5,964 crore.