Diesel, LPG prices likely to go up from next month

“Public sector oil companies are losing close to Rs500 crore per day on selling diesel, domestic LPG and kerosene at government controlled rates. We cannot continue with this for long,” an oil ministry official said

New Delhi: After petrol, price of diesel, LPG and kerosene are likely to be hiked next month when a ministerial panel headed by finance minister Pranab Mukherjee meets to decide on passing rise in crude rates to consumers, reports PTI.

“The Empowered Group of Ministers (EGoM) has been scheduled to meet on 9th June,” a top oil ministry official said here today.

“Price of diesel, LPG and kerosene will have to go up (to cover for rise in input crude oil cost). What EGoM has to decide is by how much,” the official said.

State-owned oil firms had earlier this month hiked petrol price by a steep Rs5 per litre and oil ministry may push for a Rs4 per litre increase in diesel and at least Rs20-Rs25 per 14.2-kg cylinder hike in domestic cooking gas (LPG) rates.

Kerosene price hike too is on the cards.

“There is no escaping this time... Nothing can be treated as sacred,” the official said stressing that rates of all three commodities will be hiked.

The EGoM was originally scheduled to meet on 11th May, a day after polling in West Bengal ended but the panel meeting was postponed and has now been scheduled for 9th June.

“Public sector oil companies are losing close to Rs500 crore per day on selling diesel, domestic LPG and kerosene at government controlled rates. We cannot continue with this for long,” the official said.

Oil companies are losing Rs16.49 on sale of every litre of diesel at current price of Rs37.75 per litre in Delhi.

Besides, state oil firms lose Rs29.69 a litre on kerosene and Rs329.73 per 14.2-kg domestic LPG cylinder.


Coal India FY10-11 net profit rises 13% at Rs10,867 crore

Coal India chairman NC Jha attributed the performance to higher sales and better realisations

New Delhi: Coal India (CIL) on Wednesday reported 12.93% rise in its consolidated net profit at Rs10,867 crore for the financial year ended 2010-11 compared to Rs9,622 crore in 2009-10, the company said in a filing to the Bombay Stock Exchange (BSE).

The net sales of the company also increased to Rs50,233 crore for the year ended 31 March 2011 over Rs44,615 crore in 2009-10, reports PTI.

The maharatna firm produced 431.32 million tonnes of coal in 2010-11 which was almost same as the output of 431.26 million tonnes registered in the previous fiscal.

“In a notification on 13 January 2010 the ministry of environment and forests (MoEF) had imposed a temporary moratorium till 31 August 2010 on development projects in 43 clusters labelled critically polluted.... The moratorium has adversely impacted the coal production of the company during the financial year 2010-11,” it said.

CIL’s coal offtake in 2010-11 went up marginally by 2% to 424.5 million tonnes in 2010-11 over 415.8 million tonnes in the previous financial year.

The PSU had reported a 24.2% rise in standalone net profit at Rs4,696 crore for 2010-11 on account of increase in sales and dividend from subsidiary companies.

“The overall result of the company has been very good. It could be attributed to various reasons like our stocks were sold very well. Moreover, there had been increase in sales,” Coal India chairman NC Jha had said while announcing its standalone results.


Tata Steel Q4 consolidated net up 72% on strong volumes

Tata Steel chief financial officer Koushik Chatterjee attributed to the robust performance to higher sales and realisations, along with cost-cutting measures initiated in the aftermath of the financial crisis

Mumbai: Tata Steel on Wednesday said it has posted 71.61% jump in consolidated net profit to Rs4,177.14 crore for the fourth quarter ended 31st March, helped by stronger volumes in India operations, sale of Teesside Cast Products and better prices in Europe market, reports PTI.

“We have posted profit in the March quarter due to good demand and sale of our Teesside Cast Products,” Tata Steel chief financial officer Koushik Chatterjee told reporters here.

The company sold Teesside Cast Products in March this year at Rs2,091 crore, which has boosted its profit in the March quarter, he said, adding, “Overall our domestic as well as overseas operations have done well in the March quarter.”

The steel giant reported net profit of Rs8,982.69 crore for the year (2010-11) after taxes, minority interest and share of profit of associates as against a consolidated net loss of Rs2,009.22 crore in the last fiscal.

The company’s turnover rose to Rs33,818 crore during the quarter under review from Rs27,501 crore in the January-March quarter of the previous fiscal.

Net profit during FY10-11 stood at Rs8,983 crore as against a loss of Rs2,010 crore in FY09-10.

During the year, turnover increased to Rs1.18 lakh crore from Rs1.02 lakh crore in the previous fiscal.

The company’s European operations recorded robust improvement, posting an EBITDA of Rs4,204 crore, an increase of Rs5,555 crore compared to FY09-10.

“Higher sales and realisations, along with cost-cutting measures initiated in the aftermath of the financial crisis, contributed to the performance. However, the long products business continued to face significant challenges and the company, accordingly, announced restructuring initiatives earlier this month,” Mr Chatterjee said.

The company’s board of directors has recommended a dividend of Rs12 per share for FY10-11.

“We enjoy an excellent position in India compared to our global peers to counter cost pressure, given the growing domestic market, a higher proportion of value-added products and a sizeable increase in capacity by end of the financial year,” Tata Steel managing director HM Nerurkar said.

Mr Nerurkar said the South East Asia operations focused on tackling a challenge business environment and are now better placed to take advantage of improving market condition.

On Tata Steel’s greenfield plant in Odisha, he said, “The project is gaining momentum and its first phase is expected to be commissioned by 2014-end.”

On outlook of steel prices, the company’s Europe operations’ chief executive, Karl-Ulrich Kohler, said raw material prices will remain high in the current and even in the next quarter.

“Demand for steel in Europe remains a cause for concern for the company, but it was seeing some positive signs,” Mr Kohler said.


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