RIL slumps on fears of fall in refining margins

Reliance Industries lost 7.14% to Rs 1504 on BSE on fears the company may report fall in its gross refining margins in Q2 September 2008 over Q2 September 2007 largely due to sluggish demand for petroleum products in key Western markets.

On BSE, 14.04 lakh shares were traded in the counter. The stock had an average daily volume of 13.69 lakh shares in the past one quarter.

The stock hit a high of Rs 1598 and a low of Rs 1502.20 so far during the day. The stock has a 52-week high of Rs 3,252.10 on 15 January 2008 and a 52-week low of Rs 1,480 on 10 October 2008.

India's largest private firm in terms of market capitalization and oil refiner outperformed the market over the past one month till 14 October 2008, declining 16.14% as compared to the Sensex's decline of 17.98%. It had underperformed the market in the past one quarter, falling 20.87% as compared to the Sensex's decline of 13.86%.

The company's current equity is Rs 1,573.79 crore. Face value per share is Rs 10.

The current price of Rs 1504 discounts its Q1 June 2008 annualized EPS of Rs 113.07, by a PE multiple of 13.30

As per analysts at foreign brokerage houses, Reliance Industries (RIL) may report a 4.3% fall in its gross refining margins (GRM) to $13 per barrel in Q2 September 2008 over Q2 September 2007. The GRM is the difference between the selling price of the finished products and raw material cost.

On 3 October 2008, Reliance Industries said it has alloted 12 crore equity shares of face value Rs 10 each to various promoter group firms upon exercise of rights attached to warrants held by them. These equity shares would be subject to a lock-in for a period of three years from the date of allotment of the warrants.

On 22 September 2008, Reliance Industries (RIL) said it had started production of crude oil at KG-D6 block of the Krishna Godavari basin. The field will initially produce about 5,000 barrels of crude per day and is expected to reach its peak production of 5,50,500 barrels of crude per day over the next six to eight quarters.

Reliance Industries' net profit rose 13.2% to Rs 4110 crore on a 40.8% rise in sales to Rs 41579 crore in Q1 June 2008 over Q1 June 2007.

Reliance Industries 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, India that produces a wide range of products such as gasoline, superior kerosene oil and liquified petroleum gas