Reliance Industries has reported a 9.3 per cent fall in its fourth quarter net profit at Rs3,546 crore (down 1 per cent at Rs3,874 crore excluding exceptional items) and a 21.47 per cent drop in fiscal 2008-09 (March-April) profit at  Rs15,279 crore.

Fourth quarter turnover dropped 24 per cent to Rs28,362 crore while turnover for the full year rose 9.6 per cent to Rs1,46,291 crore, the company said while announcing its unaudited financial results for January-March 2009.

The $54 billion Reliance Industries Ltd, India's biggest energy group, which has been hurt by the squeeze on margins by the oil price spike and the global economic downturn, still fared better than market expectations.

Reliance's refining margins fell to $9.9 per barrel in the quarter, from $15.5 a year earlier.

Basic earning per share (EPS), excluding exceptional item, for the year was Rs103.2 ($2.03) against Rs105.0 for the previous year. Basic earning per share (EPS), including exceptional item, for the year was Rs101.0 ($1.99).

Highlights of the un-audited financial results:

• Turnover up 8.3 per cent to Rs. 150,771 crore ($29.7 billion)
• Exports rise 12.6 per cent to Rs94,038 crore ($18.5 billion)
• PBDIT up 5.1 pr cent at Rs25,428 crore ($5.0 billion)
• Cash profit before exceptional items up 2.7 per cent at Rs21,566 crore ($4.3 billion)
• Net profit before exceptional items rise 2.3 per cent to Rs15,607 crore ($3.1 billion)
• Gross refining margin at $12.2 / bbl for fiscal 2008-09
• Return on capital employed at 20.7 per cent for fiscal 2008-09
• Return on equity (ROE) at 21.0 per cent for the year
• Net debt to equity at 0.24 as of 31 March 2009

Last month, the board of directors of Reliance Industries and Reliance Petroleum unanimously approved RPL's merger with RIL subject to necessary approvals.

The merger was approved by the shareholders and creditors of both the companies.

RIL continues to be amongst the 30 fastest growing companies in the 2008 list of Global Fortune 500 companies. RIL currently ranks 206 among top 500 global companies and 103 in terms of profits.

"This was a transformational year for Reliance. We commissioned our large refinery and substantially completed gas development projects. We have set new global benchmarks for project execution. Our operating performance with earnings growth is creditable in a year of extraordinary challenges of price volatility and demand reduction, said Mukesh D Ambani commenting on the results.

Cost of raw materials and traded goods increased by 11.4 per cent from Rs96,312 crore to Rs107,304 crore ($21.2 billion) mainly on account of higher crude and naphtha prices during the first half of the year and higher trading of the goods, RIL said in the release.

Employee cost was Rs2,358 crore ($465 million) for the year as against Rs2,119 crore primarily on account of voluntary separation scheme announced for the employees of Patalganga unit during the quarter ended 31 December 2008. Over 425 employees accepted the VSS offered by the company. A sum of Rs110 crore ($22 million) has been paid during the third quarter.

Other expenditure increased 16.0 per cent from Rs9,839 crore to Rs11,413 crore ($ 2.3 billion). Expenditures were higher due to exchange differences, power and labour costs partially offset by lower establishment expenses, the company said.

Depreciation was higher by 4.4 per cent at Rs5,059 crore ($997 million) against Rs4,847 crore in the previous year primarily on account of higher amortisation in oil and gas segment.

Interest cost was higher at Rs1,692 crore ($334 million) as against Rs1,077 crore primarily on account of increased borrowings during the year. Interest capitalised, during the year, was Rs2,532 crore ($499 million) as against Rs885 crore in the previous year.

Exceptional item represents provision of Rs370 crore ($73 million), in the quarter ending 31 March 2009, towards estimated claims on account of subsidiaries.

The outstanding debt as of 31 March 2009 was Rs53,457 crore ($10.5 billion) compared to Rs36,480 crore as of 31 March 2008.

RIL has cash and cash equivalents of nearly Rs25,000 crore ($5.0 billion). These are in fixed deposits, certificate of deposits with banks and government securities and bonds. RIL's net debt was approximately equivalent to 1.1 times PBDIT for the year.

RIL's share in Tapti block production was 1,260 MMSCM of natural gas and 81,475 tonnes of condensate, registering a growth of 25 per cent and 17 per cent respectively over the previous year.

RIL share in Panna-Mukta block production was 500 MMSCM of natural gas and 484,565 tonnes of crude oil, a decrease of 18 per cent and 15 per cent respectively as compared to the previous year.

RIL commenced gas production from KG D6 block (D1/D3 discoveries) on 2 April 2009 - in a record time of six and half years, as against world average of 9 – 10 years for similar deepwater facilities.

KG D6 is amongst the five largest deepwater gas projects globally. Gas production is expected to transform India's energy landscape and is expected to double the current level of indigenous gas production.