MUMBAI: Indian energy company Reliance Industries Ltd posted nearly flat fourth-quarter profits, in line with estimates, as a slimmer margin in its oil refining business offset higher revenue.

Reliance, which operates the world’s biggest refining complex in western India, reported net profit of 56.31 billion rupees for the quarter to end-March, compared with analysts’ expectations of 56.62bn rupees.

Its average gross refining margin dropped to $9.30 per barrel from $10.10 a year earlier, although it was up from the preceding quarter’s $7.60. Net sales rose 13 per cent.

Investors have focused, however, on the oil and gas production business at Reliance, India’s second most valuable company which is controlled by its richest man, Mukesh Ambani.

The upstream business, which is small relative to refining, has several concessions including the Krishna Godavari D6 block off India’s east cost.

Gas output from the block has fallen sharply since 2010. The company says the decline is due to the geological complexity of the block, while the government says contractors have failed to drill the promised number of wells.

The block, in which BP Plc has a 30pc stake and Canada’s Niko Resources 10pc, currently produces about 13 million cubic metres of gas per day, a government source said last month.