Reliance Industries Ltd (RIL) on Thursday beat market expectations to announce a net profit of Rs 3,837 crore for the second quarter ended September 30, 2007?28% higher that Q2 FY07?s Rs 3,000 crore. Higher earnings from improved gross refining margins (GRMs) increased exports and the growing chemicals business aided growth.

Turnover for the quarter was up 6% at Rs 33,402 crore compared to Rs 31,422 crore in the second quarter of the last fiscal. However, RIL?s second-quarter numbers are not strictly comparable with Q2 FY07 as the current results include the financial impact of the merger with IPCL.

RIL stock fell 4.25% to close at Rs 2,575.90 on the BSE on Thursday, when the benchmark Sensex fell by a whopping 717 points.

The company?s GRMs improved to $13.60 a barrel from $9.10 a barrel last year. This was higher than the benchmark Singapore margin of $6.4 a barrel.

EPS for Q2 FY08 was Rs 26.40 and for H1 stood at Rs 51.40, while other income was Rs 168 crore. Operating profit stood at Rs 5,949 crore and operating margins at 18.56%.

The refining and marketing Ebit margin was 9.8% and petrochemicals Ebit margin at 15.6%. For the half year, the company?s exports were up 11% to Rs 37,074 crore. It processed 16.1 million tonne of crude during the April-September period. However, raw material consumption rose 2% to Rs 40,343 crore on higher crude prices.

The chemicals business, which accounts for 35% of revenue, boosted earnings. The price of polyester rose 8.5% in the period ended September 30 from a year earlier. RIL chairman Mukesh Ambani said, ?Our world-class assets have delivered a superior operating performance. Our investments in E&P, organised retail and development of special economic zones will all be the cornerstones for future growth.?

M-Cap crosses $100 billion

RIL became the first Indian company to attain a market capitalisation (M-Cap) of Rs 4 trillion (over $100 billion) after a 4.26% surge in its share price on the BSE on Thursday. RIL stock rose by Rs 114.7 to

a lifetime high of Rs 2,805, pushing the company?s

M-Cap to Rs 4,07,748.82 crore ($103 billion). A total of 10.57 lakh RIL shares changed hands in afternoon trades. RIL?s M-Cap stands at 7.14% of BSE?s total M-Cap of Rs 56.01 lakh crore.

However, the sell-off that gripped the market during the fag end of the session saw RIL stock tumbling off the day?s high to touch the day?s low of Rs 2,525, before closing at Rs 2,575.90, down Rs 114.40, shedding 4.25%.