Shares of Reliance Industries surged over 7 per cent in early trade on Monday after the company reported a record quarterly profit for July-September. The stock jumped 7.12 per cent to Rs 1,246.45 on the BSE and 6.79 per cent to Rs 1,244 on the NSE. The rally added Rs 1,00,208.45 crore to the company’s market capitalisation, taking it to Rs 16.74 lakh crore.The gains followed Reliance’s record September-quarter performance, with consolidated profit, including the share of associates and joint ventures, rising 33.8 per cent year-on-year to Rs 29,550 crore. Net profit attributable to owners of the company increased 40 per cent to Rs 25,548 crore. Consolidated revenue rose 27.8 per cent to Rs 3.62 lakh crore, while EBITDA climbed 23.9 per cent to a record Rs 62,409 crore.The oil-to-chemicals (O2C) business was the biggest driver of the performance. Its segment EBITDA jumped 67.9 per cent to Rs 25,203 crore, while revenue increased 44.2 per cent to Rs 2.32 lakh crore. Stronger transportation fuel refining margins and improved petrochemical margins amid global supply disruptions supported the recovery.The rally in Reliance also lifted the broader market. At 10.24 am, the BSE Sensex was up 935.82 points at 75,390.02, while the NSE Nifty had gained 248.15 points to 23,300.05.Jefferies said O2C “hit the bullseye”, citing record crude processing, flexible sourcing and a shift towards higher-value fuel exports that helped Reliance benefit from favourable refining conditions. The brokerage raised its earnings forecasts following the stronger-than-expected results.Emkay Global also pointed to the sharp recovery in O2C and improving profitability at Jio as key drivers of the earnings beat. It raised its estimates and maintained that the stock’s valuation remained attractive.Retail continued to be the softer part of the business. Reliance Retail’s gross revenue rose 6.4 per cent to Rs 91,716 crore, but EBITDA before a one-time impairment charge declined 8.6 per cent to Rs 6,228 crore. Investments in digital commerce, higher input costs and the shift of major festivals to the December quarter weighed on performance. JioMart, however, recorded 42 per cent revenue growth.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India.)
