Reliance Industries (RIL), India’s most valued company, has met market expectations with a 6.4 per cent fall in net profit to Rs 3,852 crore for the second quarter ended September 2009 as against Rs 4,116 crore in the same period of last year. A steep fall in gross refining margins and higher depreciation pulled the net profit down.

However, turnover increased by 6.1 per cent to Rs 48,843 crore in the second quarter from Rs 46,014 crore. Gross refining margin — the difference between the price of crude and the price of refined petroleum products has — more than halved to $6.3 per barrel for the half year and $6.0 per barrel for the quarter ended September from $14.4 per barrel during the half year ended September 2008.

“The timely completion of the new SEZ refinery and the deep-water, oil and gas KG D6 block and their safe and stable ramp up are noteworthy accomplishment for the company. These projects have contributed meaningfully in RIL achieving a record level of profits despite the challenging business and economic environment,” RIL chairman Mukesh Ambani said. “These projects will make a significant contribution in shaping the earnings of RIL and also play a vital role in changing the energy landscape in India,” he said.

Ahead of the results announcement, RIL shares fell 1.56 per cent to Rs 2003.85 on the BSE on Thursday. Its shares have fallen 7.49 per cent in the last one month. Some brokerages were expecting a 9 per cent fall in its second quarter profits.

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