Reliance Industries shares fall over 3 per cent despite Q4 net jump

Reliance Industries (RIL) shares fell over 3 per cent on Wednesday even as the company reported a 32 per cent jump in fourth quarter net profit - the biggest rise in almost three years.

RIL on Tuesday reported a net profit of Rs 5,589 crore in January-March against Rs 4,236 crore in the same period a year ago. Sales, however, dropped 1.4 per cent at Rs 86,618 crore.

"RIL reported lower-than-expected top-line performance for 4Q FY13. However, on the profitability front the company reported better-than-expected results," said a report by Angel Broking.

Despite making a positive opening, shares of the company went into a tailspin as the trade progressed and closed 3.78 per cent lower at Rs 774.10 on the Bombay Stock Exchange. RIL shares fell 4.22 per cent intra-day.

On the National Stock Exchange, the stock ended at Rs 778.05, down 3.34 per cent.

In terms of volume, 11.70 lakh shares of RIL were traded on BSE, while over 73.38 lakh shares were traded on NSE.

Overall, the stock market was volatile with the BSE Sensex ending at 18,731.16, down 13.77 points.

"Reliance profit came in-line with expectations. Lowering KG-D6 gas volumes remain an area of concern," said Gautam Sinha Roy, VP Equities, Motilal Oswal Securities.

Reliance Industries said it is addressing the fall in KG-D6 output to about 16 million standard cubic metres per day, a fourth of the peak achieved in 2010, by upgrading production facilities and starting drilling in satellite fields around the main gas fields in the block.

With inputs from PTI