Reliance shares slide on debt, delay in key project

The refining-to-telecom conglomerate posted on Wednesday a record consolidated quarterly profit of 95.16 billion rupees ($1.3 billion), driven by growth in its core petrochemicals division and consumer businesses of telecom and retail.

Indian markets were closed for a holiday on Thursday, but shares in Reliance took a hit on Friday with some investors concerned by the company’s debt load and the delay in its $5 billion petcoke gasifier project.

“We think the earnings momentum will remain strong, but a material improvement in credit metrics is still less likely as telco capex is likely to remain elevated,” international broking firm JP Morgan said in a report.