RIL slides as Q3 results could be weak

Reliance Industries fell 3.04% to Rs 1192.50 at 12:49 IST after Reliance Natural Resources asked the Bombay High Court not to lift the stay on the sale of gas from Reliance Industries' block in the Krishna-Godavari basin.
Another reason for the weakness in the stock was expectations of dismal Q3 December 2008 results
The stock hit a high of Rs 1210 and a low of Rs 1185.20 so far during the day. The stock had a 52-week high of Rs 2799 on 21 January 2008 and a 52-week low of Rs 930 on 27 October 2008.
India's largest private sector firm by market capitalization and oil refiner has an equity capital of Rs 1,573.80 crore. Face value per share is Rs 10.
The current price of Rs 1192.50 discounts its Q2 September 2008 annualised EPS of Rs 113.40, by a PE multiple of 10.51.
As per reports, Mukesh Ambani-led Reliance Industries (RIL) has sought to lift the stay as it claims it is ready to produce gas next month. But arguing before the court against vacation of the stay, Reliance Natural Resources (RNRL) senior counsel Mukul Rohatgi on Monday, 19 January 2009, said that there is no immediate supply of gas, adding, that let the Directorate General of Hydrocarbons (DGH) make a statement when the company is ready to produce the gas.
In May 2007, the Bombay High Court in an interim order had asked RIL not to 'create third-party interest' for 40 million standard cubic metres per day (mscmd) of gas from the KG basin committed to NTPC and RNRL under their respective agreements with RIL.
Both NTPC and RNRL are seeking gas from RIL at $2.34 per million British thermal unit (mBtu) and fighting a legal battle with RIL at the Bombay High Court. The government approved price for the gas is $4.20 per mbtu.
RNRL has been laying claim on a portion of the gas reserves at a lower rate, citing a family agreement that formed the basis of a split between the estranged Ambani brothers in 2005. RNRL is demanding 28 million standard cubic metres per day (mscmd) of gas from the prolific reserves on the country's eastern coast-discovered by RIL-at $2.34 per mmBtu for 17 years. For RNRL, the availability and pricing of gas from RIL's Krishna-Godavari basin is critical for the success of its proposed 7,500 megawatt power plant in Dadri.
Reliance Petroleum (RPL) a subsidiary of Reliance Industries, will start fuel exports from its new refinery this month. RPL had commissioned work at its 5,80,000-barrels-per-day only for exports refinery at Jamnagar, Gujarat in December 2008.
Meanwhile, the RIL stock was also under pressure as marketmen expect the company's profit may fall in Q3 December 2008 as slumping oil prices squeezed refining and petrochem margins. This will be its first fall in quarterly profit in three years. RIL will unveil Q3 results on Thursday, 22 January 2009.
RIL's net profit rose 7.4% to Rs 4122 crore on 39.8% growth in net sales to Rs 44787 crore in Q2 September 2008 over Q2 September 2007.