Domestic crude oil production during March 2019 stood at 2.85 million tonne, 6.16% lower against March 2018. Natural gas production during March 2019 stood at 2815.96 million standard cubic meters (mscm), 1.20% higher against March 2018. This indicates higher imports of crude oil and more pressure on the exchequer.
Tata Steel on Thursday beat analyst estimates on net profit and operating income, but missed the revenue expectations.
It reported a consolidated net profit of Rs 2,295 crore for January-March 2019 due to higher volumes, which was expected at Rs 2,195.
Total revenue from operations in Q4FY19 grew nearly 26% year-on-year to Rs 42,424 crore, though missing estimates of nearly Rs 43,726 crore.
Meanwhile, the board of directors of Tata Steel and Tata Steel BSL (Bhushan Steel) have proposed a merger of both the companies in the interest of maximising value to all stakeholders. The merger will drive operational synergies and efficiencies, reduce the regulatory burden and simplify the group structure.
The Indian rupee Thursday dropped by 39 paise to close at more than six-week low of 70.25 against the US dollar due to the following factors:
• rising crude oil prices;
• a late sell-off in domestic equity markets; and
• a strengthening dollar against some major currencies overseas.
The Centre’s effort to convert all Coal India Ltd (CIL) mines as profit-making mines has resulted in the closure of underground mines across subsidiaries since underground operations are not cost-effective.
The government has opted for low-cost operation to keep margins at ease and except for Eastern Coalfields Ltd (ECL) as it has registered positive growth in production from underground mines for the seventh consecutive year.
Although the move enabled CIL to achieve higher growth rate, reduce under recoveries, cut cost of production, converted most of the operational mines as cost plus or profit-making mines and kept margins at ease despite subdued e-auction, this is not going to be sustainable since open cast reserves are fast depleting.
To meet the challenges of the near future, India will have to look for high-cost technology.