Mercator reported disappointing earnings with net loss widening to Rs 46 crore in the quarter ended June.

Shalabh Mittal, MD & CEO of the company spoke to CNBC-TV18 about the results and the company's outlook.

Talking about the demerger, Mittal said that we will decide on demerger of dredging business depending on the orderbook.

He further said that the process of demerger of dredging and shipping business is underway. Target to complete demerger is by the end of FY19, he added.

“The company has been in the transformation phase for the last one-and-a-half year so sequentially the company has done extremely well,” said Mittal.

“We do plan to increase the production to the targeted number of 5500 barrels per day which should happen by December or January and the full benefit of that will come in March ’20 but within this year itself we are expecting Rs 60-70 crore of EBITDA from oil,” he further mentioned.