Reliance Industries advances on natural gas discovery

Reliance Industries rose 2.40% to Rs 2,382 at 14:28 IST on BSE after it discovered natural gas reserves in an exploration block in the Krishna Godavari basin, Andhra Pradesh

Meanwhile, BSE Sensex was up 227.07 points or 1.37% to 16,835.05

On BSE, 11.06 lakh shares were traded in the counter. The stock had an average daily volume of 7.90 lakh shares in the past one quarter.

The stock hit a high of Rs 2,467 and a low of Rs 2,340 so far during the day. The stock had hit a 52 week high of Rs 3,252.10 on 15 January 2008 and a 52 week low of Rs 1,250 on 5 March 2007.

India's largest private sector entity by market capitalisation and oil refiner had underperformed the market over the past one month till 12 February 2008, declining 25.70% compared to the Sensex's decline of 20.26%. It underperformed the market in the past one quarter, declining 13.18% compared to Sensex's fall of 11.36%.

The company's current equity is Rs 1,453.65 crore. Face value per share is Rs 10.

The current market price of Rs 2,382 discounts its Q3 December 2007 annualised EPS of Rs 222.26 by a PE multiple of 10.71

As per the company's announcement during market hours today, 13 February 2008, the block KG-DWN-2003/1 is located in the southern Indian state of Andhra Pradesh and covers an area of 3,288 square kilometres. The block was awarded to Reliance Industries (RIL) in the fifth round of auction under the New Exploration Licensing Policy (NELP). Reliance Industries holds 90% participating interest while Hardy Exploration and Production India Inc, a subsidiary of Hardy Oil and Gas, holds the balance.

RIL informed that the discovery has been notified to the government and the Directorate General of Hydrocarbons and the potential commercial interest of the discovery is being ascertained.

Reliance Industries net profit rose 162.2% to Rs 8,079 crore on 22.7% rise in sales to Rs 34,590 crore in Q3 December 2007 over Q3 December 2006.

Reliance Industries is engaged in oil refining, producing and distributing plastic and intermediates, polyester filament yarn, fibre intermediates, polymer intermediates, crackers, chemicals, textiles. It is also into exploration and production of oil and natural gas.