Cost of raw material consumed as a percentage to net sales fell 760 bps to 78.6% from 86.1% in corresponding previous quarter. Employee benefit as a percentage to net sales expenses rose 40 bps to 0.7% while other expenditure increased 40 bps to 0.7%. The foreign exchange fluctuation on purchase of LNG is a pass–through cost to the customers and has been included in cost of materials consumed

Other income fell 35% to Rs 68.38 crore compared to Rs 104.01 crore in corresponding previous year quarter leading 13% decrease in PBIDT to Rs 978.32 crore. Interest cost fell 12% to Rs 88.14 crore while depreciation rose 2% to Rs 193.58 crore. The resultant PBT decreased 17% to Rs 696.6 crore. Effective tax rate decreased 780 bps to 25.3% resulting 7% decrease in PAT to Rs 520.23 crore. Further considering share of profit in JV net profit decreased 11% to Rs 499.79 crore.

For year ended Mar20 sales decreased 8% to Rs 35452 crore as against Rs 38395.43 crore in previous year. The operating profit margins of the company rose 270 bps to 11.3% leading 21% increase in operating profits to 3989.47 crore.

Cost of raw material consumed as a percentage to net sales fell 360 bps to 86%. Employee benefit as a percentage to net sales rose 10 bps to 0.4% while other expenditure increased 90 bps at 2.4%.

Other income decreased 18% to Rs 363.57 crore leading a 16% rise in PBDIT to Rs 4353.04 crore. Interest cost rose 308% to Rs 403.2 crore while depreciation increased 89% to Rs 776.13 crore. The resultant PBT before EO decreased 2% to Rs 3173.71 crore. The company had EO expense of Rs 72.06 crore compared to nil in the corresponding previous year period. PBT after EO fell 4% to Rs 3101.65 crore.

To secure against future escalation in lease rent for the Kochi LNG Terminal and also to settle ongoing litigations with the Cochin Port Trust (CPT), the company had entered into one-time settlement of lease rent to CPT (for the period from 2010 to 2039). In accordance with the onetime settlement, expense of Rs 72 crore (amount up to 31st March, 2019) has been recognised during the current year as an exceptional item.

Effective tax rate decreased 2010 bps to 13.3% resulting 25% increase in PAT to Rs 2688.6 crore. Further considering share of profit in JV net profit increased 21% to Rs 2703.35 crore.

In view of expected increase in capacity utilisation at Kochi terminal, the customers of the company are asking for lower regasification tariff for Kochi Terminal w.e.f, 1st April 2019. The company is in discussion with its customers for volwnes tied up with respect to the said terminal and pending the finalisation of tariff the company has recognised revenue on the basis of offered regasification lariff. The impact of the same, if any, including the possible impact on impairment of Kochi Plant, cannot be determined at this stage

The scrip closed Rs 258 at BSE