Reporting its fourth quarter results on Friday, Essar Oil said that its net profit during the quarter was Rs 200 crore, which marked a noteworthy improvement over a Rs 608 crore loss which the company reported in the same quarter last year. However, for the year ending 2012-2013, the annual profits of Essar continued to be in red, with the company posting an annual loss of Rs 1,180 crore.
Essar Oil has announced on Wednesday that it has recorded a net profit of Rs 320 million during the third quarter of the current financial year.
Essar Oil, the country's second-biggest private refiner, announced on Tuesday that it was aiming to almost double its revenues in the next fiscal.
L K Gupta, managing director & chief executive officer of the refiner, said in a conference call after the company announced its third-quarter results that the company expected to cross revenues of Rs 1 lakh crore next fiscal.
In the last fiscal, Ruias-controlled Essar Oil generated Rs 58,336 crore in revenue; and in the first three quarter of the current fiscal, revenue jumped to Rs 64,928 crore.
Oil & gas giants Essar Oil and state-run Bharat Petroleum Corp Ltd (BPCL) have reported swung back to black in the second quarter of current fiscal.
Essar Oil reported profit after tax of Rs 105 crore for the three months ended September 30, against a loss of Rs 419 crore in the corresponding period of previous year; while BPCL posted a net profit of Rs 5,034.79 crore, against a loss of Rs 3,229.27 in the year-ago period.
The Supreme Court of India ordered Essar Oil to pay dues of Rs 5,189 crore, along with 10 per cent interest on this amount from January this year, to government of Gujarat.
Essar Oil had requested the apex court to grant it a time period of at least three years to pay the dues, while the government of Gujarat had sought the payment of the dues within a period of six months.
Essar Oil Ltd has said that it has secured a loan of Rs 5,000 crore from local banks to meet its sales tax liabilities towards the Gujarat government.
"Essar Oil is confident that with this facility tied up it will be in a position to meet its entire payment obligations. A new credit facility from domestic banks to provide a credit line of up to Rs 5,000 crore to meet its sales tax liability of Rs 6,169 crore,” the company said in a press statement.
The state government of Gujarat has ordered the attaching of Essar Oil Ltd's accounts even as the company affirmed in an earlier statement that it has agreed to pay Rs 1,000 crore within 30 days to the Gujarat Government towards the sales tax liability.
Essar Oil has reported a net loss of Rs 3,986 crore in the third quarter mainly due to a heavy tax payment to the Indian authorities.
Essar had reported a net profit of Rs 273 crore in the same period of the previous year.
The Supreme Court of India had put aside a ruling by Gujarat High Court in 2008 and had asked Essar Oil to pay Rs 6,308 crore for a sales tax deferment scheme as the company was not eligible for the scheme. Essar Oil has already filed a review petition with the Supreme court of India.
Essar Oil is planning to file a review petition in the Supreme Court against the apex court's verdict on Tuesday.
The Supreme Court of India has put aside a ruling by Gujarat High Court in 2008 and has asked Essar Oil to pay Rs 6,308 crore for a sales tax deferment scheme as the company was not eligible for the scheme.
Besides a dispute over $5 billion of unpaid bills crude oil supply to India from Iran is observed to rise by 14% during the month of June, where Iran's oil deliveries to the Asian nation rose to 400,000 barrels a day in June from 350,000 barrels a day in May, said the source. Prior to dispute Iran supplied about 400,000 barrels a day in 2009-2010.
Essar Oil Company has registered 3% growth with net profit of Rs 4.69 billion besides to the loss it incurred in last year of 0.7 billion. This recorded growth was for the first quarter of the financial year 2011-2012.
The officials of the company informed that the company’s refinery expansion would be complete by September 2011. They also informed that they would heave $1.5 billion (around 6000 crore) in foreign currency instead of Indian rupee for their ongoing projects.
Technical analyst Hitendra Vasudeo has maintained 'buy' rating on Essar Oil Limited stock to achieve a target of Rs 127.70.
The analyst said that the stock can be purchased with a stop loss of Rs 122.
The stock of the company, on March 28, closed at Rs 123.85 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 161 and a low of Rs 102 on BSE.
Current EPS & P/E ratio stood at 1.41 and 86.86 respectively.
Essar Oil said that it has posted a loss of Rs. 70 crore during the quarter ending June 30. This has happened since the margins in the oil refinery business has contracted during the above mentioned period.
The company is owned by the Ruias.
It posted an income of $5.61 per barrel of crude oil during the April-June quarter. The gross refining margin during the same period was $6.74 per barrel in the previous year. For the same period, the net profit of the firm was Rs. 169 crore.
Revenue soared by 52 per cent to end at Rs. 12,048 crore.
Stock market analyst Deepak Singh has maintained 'buy' rating on Essar Oil Ltd stock with short term target of Rs 155.
According to analyst, the investors can buy the stock stop loss of Rs 137.
The stock of the company, on July 04, closed at Rs 140.35 on the Bombay Stock Exchange (BSE). Current EPS is -5.23.
The share price has seen a 52-week high of Rs 174.90 and a low of Rs 117 on BSE.
Essar Oil has decided to fast track the launch of its fuel retail outlets with the aim that they can hit the 1,750 figure by March 2011.
On Wednesday, Essar Oil said that it has managed to raise $115 from its proposed $300 million plan. For raising funds, the company which is part of the Essar Group, had come out with the bonds. It was raised in the name of the promoter, Essar Energy Holdings.
The money thus raised is going to be used by the company for the purpose of expanding its operations.
Technical analyst Kunal Saraogi is of the view that investors can hold Essar Oil stock for short term target above 155.
According to Saraogi, the investors can hold the stock with a stop loss of Rs 128
Today, the shares of the company opened at Rs 130.80 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 194 and a low of Rs 118.05 on BSE.
Current EPS is -5.23.
Technical analyst MB Singh is bullish on Essar Oil Ltd and maintained 'hold' rating on the stock to achieve a target above Rs 160.
The investors can hold the stock with a stop loss of Rs 140.
Today, the shares of the company opened at Rs 144 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 194 and a low of Rs 108.05 on BSE.
The promoters of Essar Oil have infused about Rs 1,320 crore into the company to support its growth plan.
Essar Oil has announced its financial report for the year and has reported an impressive net profit. This has been achieved by the company in its second year of operations and it is now focusing on some of its expansion plans.
The firm is planning to expand the capacity of its Vadinar refinery to 18 million tonnes. The press statement suggests that Essar Oil has managed to receive a net profit of Rs 29 crore in 2009-10 fiscal years while there was a massive net loss of Rs 514 crore in the previous year.
Essar Oil, India’s largest private fuel retailer, is on expansion mode. The company is planning to nearly double its number of petrol pumps to 2,500 by next fiscal year ending March 2011. The company currently has 1,293 petrol pumps. The company produced 280,000 barrels petrol and diesel per day through its refinery at Vadinar in Jamnagar district of Gujarat.
Stock market analysts have maintained 'buy' rating on Essar Oil Ltd with an intraday target of Rs 148.
According to them, interested traders can purchase the stock above Rs 144 with a strict stop loss of Rs 141.
If the stock markets remain on the positive path then the stock price will hit a target above Rs 152.
Shares of the company, on Wednesday (Dec 10), closed at Rs 143.70 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 194 and a low of Rs 60.10 on BSE.
Current EPS & P/E ratio of the stock stood at 3.04 & 47.53 respectively.
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