Better-than-expected petchem margin and other income hashelped Reliance’s numbers Prayesh Jain a research analystwith

“Better-than-expected petchem margin and other income hashelped Reliance’s numbers,” Prayesh Jain, a research analystwith India Infoline said. The company said its petrochemicals EBIT margin for thequarter rose to 17.7 percent from 10.4 percent a year before. Other income rose to 9.93 billion rupees from 2.89 billiona year ago. “In 2009/10, we estimate 126 rupees of consolidated EPS(earnings per share) for the company, mainly driven by KG-D6gas production, and marginally gaining from RIL-RPL (RelianceIndustries-Reliance Petroleum) merger,” Jain added. Turnover fell to 290.73 billion rupees from 386.97 billiona year ago.

State-owned rival Oil & Natural Gas Corp (ONGC.BO) isexpected to report net profit rose by almost one-third in thesame quarter as lower crude prices meant it did not have toshare the subsidy burden of state-run oil marketing companies,analysts said.Ahead of the results, shares in Reliance, closed up 2.7percent at 1,762.35 rupees in a Mumbai market that rose 2.9percent. The stock jumped 24 percent in the March quarter,outperforming a flat benchmark index .BSESN and the energysector’s .BSEOIL 16.6 percent rise. ($1=50.1 rupees) (Reporting by Ami Shah; Editing by Ranjit Gangadharan and JohnMair). (Corrects paragraph after first sub-heading after company saidit expects mid teens percentage growth in total loans, notrevenue) Russia * 2008 net profit $212 mln vs $1.5 bln in 2007 * Provisioning charge 3.2 pct, up from 1.3 pct in 2007 * Provisions soar by $1.1 bln in Q4 * Says will record gain from bonds buyback in Q1 2009 * Will continue bonds buyback if mkt conditions are good(Updates with management press conference, analyst comment) By Melissa Akin and Olzhas Auyezov MOSCOW, April 23 (Reuters) – VTB (VTBR.MM), Russia’ssecond-largest bank, made a net profit last year of $212million, it said on Thursday, defying expectations of a loss bybooking a gain on a bond buy-back in the fourth quarter. “The nominal value of bonds bought back during the fourthquarter of 2008 amounted to $1.4 billion. A net gain from thebuy-back of $349 million was booked during that quarter,” VTBsaid in a statement Most analysts had expected a small loss in 2008. Forecastsfor full-year net income varied widely, from a $150 million lossto a $33 million profit, because of uncertainty over provisionsand trading losses.

VTB did not give a breakdown of results for the fourthquarter. Citi analysts estimated it made a net loss of $79million for that period. A Reuters poll of analysts had showedexpectations of a $316.7 million loss for the quarter Citi analysts called it a “low quality beat”. “Core revenue items — net interest income and fee income –were largely flat over the quarter,” Citi wrote in comment onthe results. The shares rose more than 3 percent in Moscow, joiningCredit Suisse (CSGN.VX) among European financial institutions topleasantly surprise investors, supporting the broader market. Meanwhile, VTB said it will record a gain from the buybackof its bonds in the first quarter of 2009, and that it willcontinue to buy if market conditions are good.

“This year we see the substantial narrowing of the spread,and this is not going to be as profitable as it was in 2008,”Chief Financial Officer Nikolai Tsekhomsky told a conferencecall. RATE CUT The bank said it was expecting total loans growth in the midteens percentage this year. During a press briefing, Tsekhomsky said net interest marginwas expected to weaken and declined to comment on prospects forprofit in 2009. “We expect the margin will slightly decline in 2009,”Tsekhomsky said. Russian borrowers, affected by falling demand in Russia andabroad and hard pressed to make loan payments, have beenclamouring for cheaper credit, a banner taken up by PrimeMinister Vladimir Putin. Just after VTB’s results, Russia’s central bank announcedthe first interest rate cut in what is expected to be a seriesof moves aimed at supporting the economy through its deepestcrisis in a decade.