Cost of raw material consumed as a percentage to net sales fell 310 bps to 86.8% from 89.9% in corresponding previous quarter. Employee benefit as a percentage to net sales expenses fell 10 bps to 0.3% while other expenditure increased 250 bps to 4.7%. 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 43% to Rs 86.48 crore compared to Rs 151.39 crore in corresponding previous year quarter leading 1% increase in PBIDT to Rs 784 crore. Interest cost rose 360% to Rs 103.53 crore while depreciation rose 91% to Rs 194.22 crore. The resultant PBT decreased 26% to Rs 486.25 crore. Effective tax rate decreased 660 bps to 26.2% resulting 18% decrease in PAT to Rs 359.02 crore. Further considering share of profit in JV net profit decreased 20% to Rs 373.2 crore.

The company has elected to exercise the option of lower tax rate of 25.17% under Sec 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the tax provision for the current year has been made at such lower rate.

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 volumes 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 tariff. The company is confident that revised price will not be materially different from the offered tariff and there will not be any material financial impact on the company on account of revision of regasification tariff for Kochi Terminal.

The operations of the company were uninterrupted during the lockdown due to outbreak of COVID-19, as natural gas is declared as one of the essential commodities by the Government of India.

The Board has recommended final dividend on current paid up capital of Rs. 1,500 crore at Rs. 7 per equity share of Rs. 10 each for the year 2019-20 subject to the approval of shareholders.

The scrip closed Rs 254 at BSE