Reliance Industries' shares hit record high in September 2017: Up by 4.5 percent

As of Wednesday, October 18, shares of Reliance Industries have now crossed Rs 900-level. This is the first time the shares have reached such high mark and it has reportedly gone up by 4.5 percent further ending at record closing high of Rs 914.50 per share.

This rise in share levels has mainly gone up due to Jio's earnings and "strong refining margins in the quarter which ended September 2017." Money Control reports that majority of analysts further expect the telecom business to show higher profits in the December quarter after a positive performance in September quarter.

Just a few days back, Reliance Industries had also reported a net profit of Rs. 8,097 crore for September quarter (up 12.8 percent YoY) on revenue of Rs 101,169 crore (up 24 percent YoY). The company gross refining margins reached up to USD 12 per barrel against street expectations of USD 12.5 a barrel. Following such achievements, Reliance has outperformed benchmark Singapore Complex margins by USD 3.7 per barrel.

However, Reliance Jio also suffered a net loss of Rs. 270.6 crore in July-September quarter against a loss of Rs. 21.3 crore in June quarter. This was much lower than what analysts' had estimated - around Rs. 2,000 crores.

As per the reported data, Jio's revenue for the quarter remained at Rs 6,147.06 crore and EBITDA stood at Rs 1,442 crore with margin at 23.45 percent.

The success of the company can also be attributed towards the strong business model of the Jio telecom business. Further, the company has been adding subscribers at a robust pace and going forward this will surely contribute to the bottom line from Q3FY18 onwards.

Apart from the telecom space, the company is also planning on spending $1.4 billion to produce 7 million cubic meters a day of natural gas from KG-D6 deep-sea fields in the Bay of Bengal.

Via