Monday, February 16, 2009

RIL tumbles

Reliance Industries tumbled 4.60% to Rs 1326.10 at 12:50 IST as the government did not re-introduce the anticipated seven-year income-tax holiday for natural gas producers.


Meanwhile, the BSE Sensex was down 326.28 points, or 3.39%, to 9308.61.
On BSE, 10.05 lakh shares were traded in the counter. The scrip had an average daily volume of 23.66 lakh shares in the past one quarter.
The stock hit a high of Rs 1395 and a low of Rs 1320.10 so far during the day. The stock had a 52-week high of Rs 2706.60 on 5 May 2008 and a 52-week low of Rs 930 on 27 October 2008.
The stock had outperformed the market over the past one month till 13 February 2009, rising 28.68% as compared to the Sensex's 6.21% rise. It had also outperformed the market in the past one quarter, rising 19.69% as compared to the Sensex's rise of 1.03%.
India's largest private sector company by market capitalization and oil refiner has an equity capital of Rs 1573.80 crore. Face value per share is Rs 10.
The current price of Rs 1326.10 discounts its Q3 December 2008 annualised EPS of Rs 88.97, by a PE multiple of 14.90.
External Affairs Minister Pranab Mukherjee, currently in charge of the finance ministry, presented the interim budget today, 16 February 2009.
The Petroleum Minister, Murli Deora, hinted some days back that the government may consider granting seven-year tax holiday for natural gas producers in an attempt to make the next round of Nelp (New Exploration and Licensing Policy) bidding attractive. The finance ministry had withdrawn the tax holiday last year.
Murli Deora was quoted by media as saying that petroleum ministry had written a letter to the finance ministry in this regard. This incentive is important for attracting investments in the Indian upstream sector.
Meanwhile, RIL will soon initiate discussions with buyers for its Krishna Godavari Basin field (D6 block) gas, reports suggest. Subsequent to the interim order of the Mumbai High Court that allowed RIL to sell gas at $4.20/million British thermal units, the company plans to start signing term sheets with the customers in the next few weeks. RIL is looking at starting trial gas production by the end of this month.
Reliance Industries' net profit fell 56.7% to Rs 3501 crore on a 8.8% decline in sales to Rs 31563 crore in Q3 December 2008 over Q3 December 2007.
RIL manufactures petrochemicals, synthetic fibers, fiber intermediates, textiles, blended yarn and polyester staple fiber. The company also owns a petroleum refinery cum petrochemicals complex in Jamnagar, Gujarat that produces a wide range of products such as gasoline, superior kerosene oil and liquefied petroleum gas.