Indian major, Reliance Industries ahs reported a fall of 14 per cent in net profit in the October-December quarter due to falling sales, falling value of the Indian rupee and pressure on margins.

The company said that its net profit fell 14% to Rs. 4,440 crore in the quarter compared to the same quarter last fiscal. About Rs. 1,717 crore of this was earned from the huge cash reserves of Rs. 74,540 crore and it is excluded in the calculation of the profit then it would record a fall of 38 per cent.

The operating profit in the company’s refining segment fell by 30.8% on due to lower margins on refining. The company earned $6.8 for every barrel of crude it refined in its facilities compared to $10.1 in the July-September 2011 quarter.

“The global nature of our businesses and weakness in economic conditions resulted in reduced earnings in the quarter,” chairman Mukesh Ambani said in the statement.

Meanwhile, the company has tried to control the flow of bad news by announcing a buyback, which many expect will be the biggest in the country. Reliance Industries has said in filings to the stock exchanges in the country that its board of directors will meet on Wednesday to consider approving the buyback, which is expected to about 5 or 6 times bigger than the largest buyback in the country yet.

The company might buy back shares for up to Rs 15,000 crore as it has a networth of Rs 1,51,540 crore as on March 31, 2011. The current rules restrict the amount utilised for a buyback to 10% of the company’s networth.

If it decides to utilise the full amount, its buyback will be six times the Rs 2,508 crore buyback completed by Piramal Healthcare in 2011. The younger Ambani is aiming to reduce debt burden on the company, which has resulted in the shares of the company falling 38 percent in the year.