Brokerage Motilal Oswal said on Wednesday it had cut Reliance Industries<RELI.BO> to "neutral" from "buy", as the energy giant's gas production from KG-D6 block was unlikely to be ramped up for next 6-12 months.
"As against the earlier expectation of KG-D6 gas production reaching 80 mmscmd (million standard cubic metres of gas a day), RIL indicated that the production is unlikely to increase for the next 6-12 months," the brokerage said in a note.
Reliance's chief financial officer, Alok Agarwal, had told reporters on Tuesday Reliance would not increase output at its KG D6 block off the east coast of India until a full review of the reservoir is completed. The review will "take time", he said, but did not elaborate.
Reliance, India's largest listed company, posted a 32 percent rise in June quarter profit on higher gas production, with demand for refined products in fast-growing Asia and improving margins set to drive growth.
(Reporting by Ami Shah)
