Falling cash reserves and increasing debt are expected to reduce treasury income for Reliance Industries Ltd (RIL) in the current fiscal year as the company will have less cash to invest in instruments such as mutual funds and government bonds, among others.

RIL, which is in the midst of its biggest capital expenditure cycle, is investing up to $24 billion over a five-year period since fiscal 2013 across businesses ranging from refining, petrochemicals and fourth-generation telecom services.

Oil and Natural Gas Corp. Ltd (ONGC) has quietly junked an agreement to use the existing infrastructure of Reliance Industries Ltd (RIL) in the Krishna-Godavari basin in its own neighbouring field after ties between the two companies turned sour.

The move will lead to higher capital expenditure for ONGC, which will have to set up its own infrastructure from scratch, and potential loss of revenue for RIL, which could have let out its idle equipment to ONGC for a fee.

Stating that Reliance Industries (RIL) has no locus standi to raise dispute on the ONGC’s performance, the PSU explorer on Wednesday accused the firm of draining gas from its reservoirs at 98/2KG Basin block through the latter’s wells. RIL operates the adjacent block 98/3 KG Basin.

ONGC told the Delhi High Court that it wants to secure its rights, which are being jeopardised by continuous production activity from the four wells of RIL to its detriment. ONGC had earlier accused RIL of drawing natural gas worth an estimated Rs 30,000 crore from its fields adjacent to the latter’s KG-D6 block.

Reliance Industries (RIL) has so far committed Rs 88,000 crore ($14 billion) of capital to its telecom business, sources told FE. This does not include the Rs 10,077.53 crore the telecom subsidiary, Reliance Jio Infocomm, will spend for its 800-MHz and 1,800- MHz spectrum won in the recently held auctions.

An Kotak Institutional Equities report dated April 20, notes that Reliance Jio has so far deployed about Rs 52,400 crore of capital as of March 31, against Rs 37,800 crore, as of March 31, 2014. Reliance Jio holds broadband wireless access spectrum in all the 22 telecom circles and has made significant progress in rolling out its 4G business, including physical network infrastructure, systems and processes, sales and distribution network.

Reliance Industries were trading lower by 1% at Rs 922 on the National Stock Exchange (NSE) in early morning trade on profit bookings.

The stock has rallied 16.5% from its 52-week low of Rs 796 touched on March 30, 2015, compared with 1.3% rise in the CNX Nifty till yesterday.

MUMBAI: Riding on superior refinery margins, Reliance Industries (RIL) regained its position as India's most profitable firm on Friday. It reported an 8.5% jump in its FY15 fourth quarter net profit to Rs 6,381 crore (over $1 billion) on a consolidated basis, compared to the same period a year ago. TCS had displaced RIL from the numero uno position in Q3 as RIL profits fell for the first time in two years to Rs 5,256 crore.

This effectively means that RIL profits have grown over 21% over the last quarter. This jump came even as its earnings from the petrochemicals business fell while the domestic gas business continued to disappoint.

Shares of index heavyweight Reliance Industries is trading 1.5% higher in early deals as the street expects record profits from the oil major on the back of higher gross refining margins.

Analysts expect the gross refining margin to be in the range of $9.5-10 per barrel against $7.3 per barrel in Oct-Dec 2014 quarter and $9.3 per barrel in Jan-March 2014 quarter. The gross refining margin is earnings from turning every barrel of crude oil into fuel.

Inflation data, quarterly results of bluechips like TCS and RIL are expected to keep markets volatile in a holiday-shortened week ahead, say experts. Stock markets will remain closed on Tuesday for Baba Saheb Ambedkar Jayanti.

Besides, investment trend by foreign investors, movement of rupee against dollar and crude oil prices will also dictate trends on the bourses.

Shares of Reliance Industries (RIL) were trading higher by 1% at Rs 916 on the National Stock Exchange (NSE), extending its past four-day’s gain on the bourses, on media reports that the company has discovered massive gas reserves at MJ-1 block in its KG-D6 basin.

Since April 6, 2015, the stock has rallied nearly 11% from Rs 825, compared with 1.8% rise in the CNX Nifty.

Government on Friday moved the Supreme Court seeking removal of foreign arbitrator appointed by Reliance Industries Ltd (RIL) over its dispute over the Panna, Mukta and Tapti oil and gas fields.

It sought removal of Peter Leaver QC, who was appointed the arbitrator after May 28, 2014, order of the apex court setting aside a Delhi High Court order by which it had agreed to hear the government’s plea against the arbitration proceedings in London.

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