IOC Q2 profit soars on big inventory gains

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SME Times News Bureau | 30 Oct, 2020
Country's largest public sector refiner Indian Oil Corporation on Friday reported an over 11 times jump in its second quarter net profit to Rs 6,227 crore due to higher inventory gain and exchange gains.

The company had reported a net profit of just Rs 563 crore on July-September quarter of FY20 as falling crude prices then resulted in big inventory losses.

The revenue from operations of IndianOil in Q2 FY21 stood at Rs 1,15,749 crore as compared to Rs 1,32,377 crore in the corresponding quarter of FY20.

Based on higher Q2 profits, IOC's net profit for the six months ended September 30 also stood higher at Rs 8,138 crore as compared to Rs 4,160 crore during the corresponding period of previous year.

IndianOil reported revenue from operations of Rs 2,04,686 crore for the first half of financial year 2020-21 as compared to Rs 2,82,514 crore in corresponding period of financial year 2019-20.

Presenting the company financials, IndianOil Chairman S.M. Vaidya said: "IndianOil sold 35.403 million tonnes of products, including exports, during the first six months of financial year 2020-21. Our refining throughput for first six months of FY 2020-21 was 26.899 million tonnes and the throughput of the Corporation's countrywide pipelines network was 32.364 million tonnes during the year."

The gross refining margin (GRM) during the first half of year 2020-21 stood at $3.46 per barrel as compared to $2.96 per barrel in the corresponding period of previous financial year.

Vaidya said that retail prices of petrol and diesel had remained stable for most of October without any revisions because there was not much change in international oil prices during the month. While crude hovered around $41 a barrel in September, it was close to $40 a barrel in October.

The IndianOil board also created projects worth Rs 5,000 crore at its meeting on Friday. Vaiya said that the company has used about 30 per cent of its FY21 capex of just over Rs 26,000 crore till September end and would use up all the planned capex before fiscal end.

For the second quarter of FY 2020-21, IndianOil's product sales volumes, including exports, was 18.899 million tonnes. The refining throughput was 13.969 million tonnes and the throughput of the Corporation's countrywide pipelines network was 17.347 million tonnes during the same period.