RIL posts record Q4 profit, lags estimate

MUMBAI, April 21(Agencies): India's largest private sector petroleum company, Reliance Industries (RIL) Thursday reported 14 per cent rise in its standalone net profit to Rs 53.76 billion in the quarter ended March 31, 2011, its highest ever. Results lagged analysts' estimates as flat production from its gas blocks and lower than expected refining margins weighed on results. Billionaire Mukesh Ambani's Reliance, with interests in refining, petrochemical, oil and gas exploration and retail, said quarterly net profit rose to Rs 53.76 billion from Rs 47.10 billion a year ago. The company has decided to pay dividend of Rs 8 per share. Sales increased to Rs 726.74 billion in the quarter as against Rs 575.70 billion in the same period a year ago. For the full fiscal, net profit was up 25 per cent to Rs 202.86 billion while sales increased 29 per cent to Rs 2481.70 billion. Reliance, which operates the world's biggest refining complex in western India, saw gross refining margins in its fourth quarter inch higher to $9.20 per barrel, up from $7.50 per barrel a year earlier and $9 in the previous quarter. Shares in the company, valued at $75.7 billion, have declined nearly 2 per cent in 2011, contributing significantly to the comparative 4.4 per cent fall in the main index, in which the stock has the heaviest weight. The company's natural gas volumes stagnated during the quarter. This was a cause of concern for the company, which saw its share price fall below 900 in early February. However, the company's deal with BP to sell 30 per cent stake in 21 petroleum E&P fields boosted investor confidence, taking the share price beyond 1,000. The company had to shut down its fluidised catalytic cracking unit (FCCU) for six weeks for maintenance. The unit converts heavy low-value products into lighter, more valuable ones.