Essar Oil has announced on Wednesday that it has recorded a net profit of Rs 320 million during the third quarter of the current financial year.

The company returned to profitability during the quarter from October to December 2012 mainly due to strong gross refining margins that increased to 9.75/bbl as against $ 3.82/bbl in the previous year. The company had recorded a net loss of Rs 39,860 million during the third quarter of 2011. The total income of the company increased by an impressive 85.89 per cent during the quarter to Rs 129.41 billion from Rs 240.56 billion during the same quarter of the previous year.

The gross revenues for the third quarter recorded an increase of 86 per cent to Rs 259.09 billion compared to Rs 138.97 billion recorded in the third quarter of the previous financial year. Company's earnings before interest, tax depreciation and amortisation (EBITDA) rose 8.4 times at Rs 12.42 billion compared to Rs 1.48 billion in the earlier quarter.

Shares of the company increased 1.51 per cent to Rs 73.90 at the Bombay Stock Exchange (BSE) on Wednesday.