By BS Reporter
Reliance Industries' (RIL) turnover in the retail segment grew 44 per cent in the third quarter to Rs 7,749 crore.
RIL operates 25 large format stores. "Based on the success of the first cash and carry store, the company opened another Reliance Market store and would be rolling out new stores aggressively in the months to come," RIL said in its statement.
According to market expert Ambreesh Baliga, RIL will lead the markets in the next leg of the rally. "These results will take RIL closer to Rs 970-980 levels. Even if the stock opens higher, investors can still look at buying the stock at levels around Rs 930-940," said Baliga.
On the exploration and production front, cumulative production of crude oil (2.3 million barrels) and natural gas (275 billion cubic feet) from the KG block was down 40 and 37 per cent, respectively.
"The reduction in production was due to reservoir complexity, natural decline and effect of shutdown in MA field on account of FPSO (floating, production, storage and offloading) maintenance for a period of six days," RIL said in a press statement. Gas produced from the block is being sold according to the government's gas utilisation policy.
"On the organic side, petchem business is likely to grow. Inorganic factors include retail business to break even in this financial year and 4G rollout, which is expected to be a money spinner for the company," said Deven Choksey, managing director, K R Choksey Shares & Securities.
On the other hand, RIL's shale gas business in the US continued to grow with its share of gross production at 32.3 billion cubic feet equivalent during the third quarter, up 15 per cent over the trailing quarter. RIL put 73 wells on production during the quarter.
RIL's shale gas business in the US comprises three upstream joint ventures, each with Chevron, Pioneer Natural Resources and Carrizo Oil & Gas and a midstream joint venture with Pioneer. Aggregate investments of these joint ventures since inception stood at $ 5.2 billion at the end of the third quarter.