IPCL's earnings fell 26% to Rs 249 crore for Q4 ended March 31, 2006, as against Rs 336 crore posted in the same period last year. High prices of crude and natural gas seem to be the single largest factor affecting the disappointing results, as input costs went up and profit margins narrowed. Prices of naphtha and propane were higher by 27 % and 14 % respectively. A rise of more than 50 % was seen in the price of natural gas, the major feedstock for IPCL's Gandhar complex, from July 2005. Despite robust demand, product prices stayed behind the rise in raw material costs, causing turnover to come down to Rs 2,582 crore from Rs 2,989 crore in the same period last year. Net turnover was also lower at Rs 2,298 crore (Rs 2,643 crore).
However, for the year ended March 2006, net profit of IPCL shot up to Rs 1,005 crore from Rs 786 crore in 2004-05. Net turnover rose 3% year-on-year at Rs 8,469 crore (Rs 8,199 crore).
Global prices of polyethylene, polypropylene, linear alkyl benzene were higher by 6%, 7% and 27% respectively. Prices of poly butyl rubber and caustic increased by 23%. Prices of poly vinyl chloride and mono ethylene glycol were lower by 12% and 20% respectively.
26-Apr-06 
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