BOMBAY (AFP) - Reliance Industries Ltd, the petrochemical flagship of India's largest private sector company, said second quarter net profit jumped 39 percent against a backdrop of surging oil product prices.
Net profit for the three months to September totalled 17.52 billion rupees (380 million dollars) on sales up 27 percent from a year earlier to 229.17 billion rupees, said the company, owner of the world's third largest oil refinery.
The company gave no details about its performance in the earnings statement.
However, Asian refinery profit margins have been climbing as oil-product price rises outpace the cost of crude oil, helping lift the bottom lines of companies such as Reliance Industries, the main company of the Reliance group.
Shares of Reliance Industries slipped after the results as investors took profits following a strong run-up in the stock ahead of the announcement.
"The results are in line with most analyst expectations," said Vijay Tilakraj, assistant vice president at KJMC Capital MArket.
In afternoon trade on the Bombay Stock Exchange, Reliance shares were off 2.60 rupees or 0.48 percent at 536.25 rupees but were faring better than the overall market which was down 0.97 percent.
Reliance Industries is India's second-most valuable company by market capitalisation.
The corporate behemoth, which accounts for 3.5 percent of India's gross domestic product, became India's first private sector company in the last financial year to March 2004 to cross the key billion dollar profit mark.
The company was founded 46 years ago by rags-to-riches entrepreneur Dhirubhai Ambani who died in 2002.
It is now run by his two sons, Mukesh who is chairman, and Anil, who is vice-chairman.
The company, which derives half its sales from refining and most of the rest from petrochemicals, logged a 26 percent rise in net profit to 51.60 billion rupees (1.12 billion dollars) in the 12 months to March 2004.
Reliance has become a key player in oil and gas exploration, telecommunications and petrol retail outlets after making big investments over the past few years.
10/25/2004 - 10:06 GMT - AFP