Essar weighed down by Indian tax issues, profits tank

India-focused power generation and oil and gas group Essar Energy saw shares drop on Monday morning after reporting a sharp drop in profits in the 12 months ended December 31st.

India-focused power generation and oil and gas group Essar Energy saw shares drop on Monday morning after reporting a sharp drop in profits in the 12 months ended December 31st.

The widely-reported sales tax deferment case with the Indian Supreme Court has weighed heavily on the share price over the last two months. The Supreme Court ruled against the Gujarat High Court in January in letting its 87%-owned Indian oil subsidiary, Essar Oil, pay sales tax in deferred instalments. The company then announced that it must repay $1.235bn in sales tax.

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