Mumbai, Oct. 1: At a time when global crude oil prices are ruling firm following concerns on the impact of an US-Iraq showdown, Reliance Industries Ltd (RIL), the country’s largest petrochemical manufacturer, today announced that it has brought down prices of few polymer and polyester products even as prices of fibre intermediates were raised.
The news disappointed few observers, particularly those in the stock markets, who were looking forward to an across-the-board increase in the prices of its products. Market circles said that this was one of the factor that led to the RIL scrip finishing weaker on the Bombay Stock Exchange (BSE) today.
RIL dropped over 3.15 per cent to Rs 250.05 today, a loss of Rs 7.75 over the previous close. The company yesterday announced a consolidated net profit of Rs 3,280 crore, the highest in the private sector following the merger of Reliance Petroleum Ltd with it.
The company today announced that for October, it has cut prices of partially-oriented-yarn (POY) to Rs 63.70 per kg from Rs 64.22 in September, polyethylene to Rs 37.70 from Rs 39.70, polypropylene (PP) to Rs 42.35 from Rs 44.35 and polyvinyl chloride (PVC) to Rs 37.60 from Rs 40.60.
However, it raised the price of purified terephthalic acid (PTA), the fibre intermediate, to Rs 34.30 rupees per kg from Rs 33.30 and monoethylene glycol (MEG) to Rs 31.90 from Rs 30.30.
RIL left the price of polyester staple fibre unchanged at Rs 54.25 per kg, polyethylene terephthalate Rs 58 per kg and linear alkylbenzene at Rs 51.40 per kg.
The company will announce its second quarter results on October 31. Analysts expect it announce a modest growth in topline for the period.
For the past one year, Reliance has been focussing on high value premium products, with specialty grades contributing over 20 per cent of production, and generating a premium over commodity prices.
During the first quarter, it posted a 17 per cent rise in net profit. Net profit rose to Rs 720 crore against Rs 618 crore in the same period last year. The rise in profit levels came despite lower volume sales.