Five-fold rise in Q4 profit lift Essar Oil shares 19%.

Investors continued to buy shares of  Essar Oil on Wednesday after the India's second largest private refiner reported five-fold growth in net profit at Rs 1,008 crore in the quarter ended January-March, driven by higher forex gain, better operational performance and lower finance cost. The stock rallied as much as 19 percent intraday to touch a 52-week high of Rs 92.15.

Total income grew nearly 7 percent to Rs 25,274 crore in March quarter from Rs 23,650 crore in the quarter gone by. Gross refining margin improved to USD 10.12 a barrel as against USD 9.06 a barrel year-on-year. "Operationally we continue to do well with the refinery further optimising on its crude diet and product slate, which has resulted in the company delivering healthy GRMs," says LK Gupta, managing director and CEO. Earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 32 percent to Rs 2,053 crore from Rs 1,556 crore year-on-year. Essar Oil reported a foreign exchange gain of Rs 314 crore during January-March quarter. During the same period, finance cost declined significantly to Rs 694 crore from Rs 920 crore. At 12:50 hours IST, the stock was quoting at Rs 88, up 13.40 percent amid high volumes on the BSE. Posted by Sunil Shankar Matkar 

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