RIL hits 9-1/2-year high; 1:1 bonus announced

Reliance Industries Ltd climbed as much as 3.9 per cent to a more than 9-1/2-year high after posting strong quarterly results and announcing a low-cost, 4G-enabled phone.

The company has reported a net profit of ₹9,108 crore for the June 2017 quarter, up 28 per cent from the corresponding period last year.

Reliance Chairman Mukesh Ambani announced on Friday the launch of the device - aimed to draw tens of millions of low-income users to its telecoms venture Jio's service - a day after the oil-to-telecoms conglomerate posted “surprisingly robust” results, fuelled by improved refining margins.

RIL shares rose as much as 3.9 per cent to Rs 1,588, their highest since January 2008, but its telecom rivals slumped on worries about the intensifying competition in the sector, with Bharti Airtel Ltd and Idea Cellular Ltd down as much as 4.1 per cent and 7.3 per cent, respectively.

The stock ended higher by 3.76 per cent at Rs 1,586.20 on the BSE. On the NSE, the stock closed up by 3.6 per cent at Rs 1,584.

Meanwhile, the company's board has recommended 1:1 bonus issue.

According to Kotak Securities, surprisingly robust results were marked by strong refining margins and higher petchem profits, despite weaker volumes and likely higher costs.