Reliance Industries' gas output worries never seem to fade. A Reuters reports quoting Oil Minister Jaipal Reddy has said that gas output from Reliance Industries - operated D6 block, off India's east coast, is projected to decline to 20 million standard cubic metres a day (mscmd) in 2014-15 from an estimated 28 mscmd in this fiscal year.
“Gas output may average 24 mscmd in the next fiscal year starting April 2013,” Reddy was quoted as saying. Reliance Industries has consistently seen its gas output drop. This has resulted in the company reporting a drop in profits for two consecutive quarters.
The company reported a drop in net profits to Rs 42.34 bn in the three months to March 2012, down 21% from the previous year. The company however has large cash reserves and might look at acquisitions to boost profits in the years to come.
The shares of Reliance was trading 1.27% lower on the Bombay Stock Exchange.