ESSAR OIL LTD = RESULTS = FOR Q1 FY 2012 = FIRST QTR ENDING JUNE 2011 = GOOD IMPROVEMENT

Essar Oil Limited

NSE Symbol             ESSAROIL

ESSAR OIL has reported quick progress in the first quarter, of FY 2012 ended 30th, June,2011.

Net Sales has gone up to Rs.14946 Cr  in Q1 FY 12 – up by  12.25% from Q4 FY 11;  up by 22.18% from Q3 FY 11; up by     37.01% from Q2 FY 11; and up by a good 41.92% from Q1 FY 11.

Raw Materials  cost , which is the biggest cost, has increased to Rs.13951 cr – up by 12.47% from Q4 FY 11; Up by 34.31% from Q3 FY 11; up by 45.01% from Q2 FY 11; and up by 39.52% from Q1 FY 11.

Total Expenditure has increased to Rs.14339 Cr – up by 13.33% from Q4 FY 11; up by 22.65% from Q3 FY 11; up by 36.38% from Q2 FY 11; and up by 38.62% from Q1 FY 11;

Profit from Operations has increased to Rs.685 cr – which though down by 2.7% from Q4 FY 11; is up by 18.1% from Q3 FY11; up by 60.05 % from Q2 FY 11; and up by 214.22% from Q1 FY 11.

Profit  before tax has increased to Rs.448 Cr – up by 6.16% from Q4 FY11; up by 31.38% from Q3 FY 11; up by 211.11% from Q2 FY 11; and up almost by about 713.7% from Q1 FY 11

Net Profit  has increased impressively to Rs.469 cr – up by 46.11% from Q4 FY 11; up by 71.79% from Q3 FY 11; up by 260.77% from Q2 FY 11; and up by an impressive 770% from Q1 FY 11 (from  -70 Cr  in Q1 FY 11 to Rs.469 Cr in Q1 FY 12)

On a Face Value of Rs.10 – the Basic EPS has gone up to Rs.3.43 in Q1 FY 12 ; against Rs.2.35 in Q4 FY 12;Rs.2 in Q3 FY 11; Rs.0.95 in Q2 FY 11; and Rs.(-)0.54 in Q1 FY 11.

The current MP is Rs.127.20. On a annualized EPS of Rs.3.43 x 4 = Rs.13.72 for FY 12, the PE Ratio comes to around 9.27. Looking at the fast improving financials – Essar Oil can be considered for medium / long term investment.

The Public Holding in the company is a low 10%

Key Highlights

Overall

• Quarterly gross revenues increasing by 37% to Rs 16,478 crore from Rs 12,048 crore in Q1 FY 2010-11.
• Quarterly EBITDA was at Rs 913 crore, a growth of 124% from Rs 407 crore in the corresponding quarter of last fiscal year
• Quarterly PAT was at Rs 469 crore, compared to a loss of Rs 70 crore in Q1 FY 2010-11. 
• Quarterly Current Price GRM (CP GRM) registered a 27% growth to US$ 7.38 /bbl compared to $ 5.79/bbl in Q1 FY 2010-11.

Refining

• Vadinar Refinery achieved quarterly throughput  of 3.62 MMT (million metric tonnes), signifying over 135% capacity utilisation
• Phase I expansion project, which will increase the refining capacity from 14 MMTPA to 18 MMTPA and complexity from 6.1 to 11.8, is 92% completed:
• Isomerisation Unit and many other units achieved mechanical completion in the quarter
• Rest of the units, excluding DCU, to achieve mechanical completion in Q3 of CY 2011
• Start-up activity of all expansion units to commence in phases during Q3 & Q4 of CY 2011
• 35-day shutdown planned, starting 18 September 2011, for tie-in of new units
• Revamp of CDU, FCCU & SRU to be completed during this shutdown 
• Optimisation project to enhance refinery capacity to 20 MMTPA on track; 56% already completed and mechanical completion by September 2012
• Refinery continues to maintain excellent safety track record, with 1,185 Lost Time Incident (LTI) free days as on 30 June 2011

Marketing

• Essar Oil has 1,639 retail outlets, including operational and under construction outlets
• On the back of high crude prices, HSD & MS pricing at outlets maintained higher than PSUs 
• Company increasing focus on non-fuel retailing at its outlets 
• Four CNG stations commissioned
• Tapping the opportunity of retailing Auto LPG & CNG in Essar Oil outlets through tie-ups with Aegis Logistics, Sabarmati Gas, GAIL India and Adani Gas.
• Formed new non-fuel retail alliances with Kerala Tourism, Rajasthan Tourism, Heritage Foods and United Phosphorus Group

Exploration & Production

• Raniganj CBM to start commercial sales shortly post statutory approval; block generating controlled production of about 33,000 scmd
• All supporting infrastructure for delivery of gas to customers completed
• Tie-ups with local customers at Durgapur Industrial Estate

QUARTERLY RESULTS TABLE

ESSAR OIL	30-Jun-11	31-Mar-11	31-Dec-10	30-Sep-10	30-Jun-10
Net Sales	1494600	1331500	1223300	1090900	1053100
Raw Materials	1395100	1240400	1038700	962100	999900
Total Expenditure	1433900	1265200	1169100	1051400	1034400
Profit from Operations	68500	70400	58000	42800	21800
Other Income	4700	2700	6200	2200	800
Interest	28400	30900	30100	30600	29900
Profit  before tax	44800	42200	34100	14400	-7300
Net Profit	46900	32100	27300	13000	-7000
Paid Up Equity	136600	136600	136600	136600	136600
Basic EPS	3.43	2.35	2	0.95	-0.54
Diluted EPS	3.22	2.21	1.89	0.9	-0.54
Public Holding (%)	10.04	10.04	10.04	10.04	10.04

ANNOUNCEMENTS TO NSE

11-07-2011      standalone Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 1519900 lacs for quarter ending on 30-JUN-2011 against Rs. 1053100 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 46900 lacs for the quarter ending on 30-JUN-2011 against Rs. (7000) lacs for the quarter ending on 30-JUN-2010. -

03-05-2011      standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 4698800 lacs for year ending on 31-MAR-2011 against Rs. 3650500 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 65400 lacs for the year ending on 31-MAR-2011 against Rs. 2900 lacs for the year ending on 31-MAR-2010. 

28-03-2011      Essar Oil Limited has informed the Exchange vide its letter dated March 28, 2011 that "planned shutdown of Refinery at Jamnagar." 

17-01-2011      Essar Oil Limited has informed the Exchange that at a meeting of the Board of Directors of the Company held on January 17, 2011 the following business was transacted: The Company has planned a 35-day shutdown during May-June 2011 to complete the revamp of its Crude Distillation Unit to 18 MMTPA and FCCU (Fluidized Catalytic Cracking Unit) to 3.9 MMTPA, and carry out the tie-in jobs for the expansion units. The Company will also take advantage of the period of shutdown to carry out routine maintenance work at the Refinery. 

*  *  *   E  N  D   *   *  *