26 November 2007 08:37 [Source: ICIS news]
MUMBAI (ICIS news)--Reliance Industries Limited (RIL) is expected to nearly double its quarter-on-quarter net profits in the October-December period due to a one-off gain from the sale of over 4% equity in Reliance Petroleum Limited (RPL), analysts said on Monday.
“RIL is likely to post about a 100% rise in its third-quarter net profits, sequentially, if the company includes this extraordinary gain [from the sale of RPL's equity share] in its profit and loss account,” one analyst told ICIS news.
The Indian petrochemicals major had sold 4.01% of its share capital in its subsidiary in the open market for Indian rupees (Rs) 40.20bn ($1.03bn), the company said in a statement late on Friday.
RIL now holds a 70.99% stake in RPL, down from 75% post the equity sale, it added.
However, the company did not specify what the proceeds of this sale would be used for as the company spokesperson was not available for comment.
In the second quarter, the company posted a net profit of Rs38.4bn, up 41.6% year on year and 17.6% over the previous quarter.
Shares of RIL were up 1.8% to Rs2,862 whereas those of RPL were up 0.67% to Rs210.90 at 06:28 GMT on the Bombay Stock Exchange.
($1 = Rs39.65)
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