Essar Oil back in black in Q2

The Ruias-promoted Essar Oil has posted a net profit of Rs 226 crore for the second quarter of this fiscal against a loss of Rs 71 crore during the corresponding previous quarter.

However, lower crude oil prices pulled the revenue down 12% at Rs 24,194 crore from Rs 27,392 crore a year ago.

The company said that dip in revenues is mainly due to lower crude oil price during the quarter.

Gross refining margin during the quarter stood at $7.03 per barrel as compared to $6.93 per bbl in second quarter of last fiscal.

"Financials for the quarter were impacted on account of decline in cracks of key products and weakness in oil prices which is partly offset by operational efficiency and reduction in interest and financial charges due to part dollarization of our debt," said Suresh Jain, chief financial officer, Essar Oil.

"We expect to complete our balance dollarisation programme by end of FY15 to further reduce our overall cost of debt," he added.

During the quarter, the company realised 52% of its revenues from the domestic market against 44% in Q2FY14.

Essar Oil has over 1,400 retail outlets across the nation, with about 300 in various stages of commissioning. The company added that with the government announcing deregulation of diesel prices, it has begun retail sales of diesel through its outlets.