Shares of Reliance Industries Ltd (RIL) fell nearly 4 per cent on the bourses today despite the company reporting a nearly 16 per cent rise in net profit in the second quarter this fiscal.
RIL, which carries the maximum weight on the BSE benchmark Sensex, fell 3.76 per cent to a low of Rs 834.15. Similarly, on the NSE, the bellwether stock plunged 3.82 per cent to Rs 833.70.
The company was the top loser among the blue-chips during morning trade, pulling down the benchmark Sensex by 107.68 points to 16,975.01 at 11.30 am.
Reliance Industries came out with its Q2 results on Saturday.
The net profit of the company rose 15.8 per cent to Rs 5,703 crore in the July-September period — RIL’s highest quarterly profit since 2007.
The results by the company were mostly in line with the market expectations, analysts said.
RIL said its showpiece Krishna-Godavari Basin D6 gas fields have seen a sharp drop in production “mainly due to reservoir complexity’’.
Output from RIL’s KG-D6 fields dropped 20 per cent to 147.2 billion cubic feet, or an average of just over 45 million standard cubic meters per day, during the quarter.
Meanwhile, according to media reports, CLSA has downgraded Reliance Industries to ‘outperform’ from ‘buy’ and has cut its target price to Rs 950 from Rs 960, citing a premium to global peers and weak gross refining margins (GRM).