Essar Oil reported a loss of Rs 71 crore for the second quarter ended September 2013, against a profit of Rs 105 crore in the previous year period on the back of weaker gross refining margins and forex losses.

However, on a sequential basis, the company showed a recovery from losses of Rs 863 crore reported in the quarter ended June 2013.

Its gross revenues grew 19 per cent at Rs 27,392 crore (Rs 23,023 crore), thanks to higher throughput and a weak rupee.

For the latest quarter, the company’s GRM (gross refining margin) stood at $6.93 per barrel ($7.86 per barrel) mainly due to a sharp reduction in benchmark IEA margins by $3.76/bbl during the quarter and a substantial increase in diesel exports due to negative diesel demand growth in the domestic market this year.

During the quarter, Essar Oil realised 54 per cent of its revenues from exports (30 per cent). L.K. Gupta, MD & CEO, said he is confident of the business potential in this segment as he sees the country moving towards a diesel deregulation.

manisha.jha@thehindu.co.in

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