Indian Oil net profit rises 18.4% to Rs3,696 crore
New Delhi: State-owned Indian Oil Corp. Ltd on Friday reported an 18.4% jump in September quarter net profit to Rs3,696.29 crore from a year ago on account of higher volumes despite increased costs.
Indian Oil informed the stock exchanges that revenue jumped about 10% to Rs1.1 trillion in the second quarter from a year earlier as the company stepped up sale of refinery products in domestic and export markets.
“The variation in net profit (in September quarter) is majorly on account of inventory gains,” Indian Oil chairman Sanjiv Kumar told reporters. The gross refinery margin for the quarter was $7.98 per barrel compared to $4.32 barrel a year ago, said Singh. However, in the first six months of the current fiscal ending 30 September, Indian Oil reported a lower net profit of Rs 8,245 crore against Rs 11,391 crore a year ago, mainly due to inventory losses partly compensated by higher refinery margin, Singh explained.
Domestic sales in the second quarter rose to 19 million tonnes (mt) from 18.5 mt a year ago, while exports increased to 1.9 mt from 1.2 mt a year ago.
The jump in net profit is despite higher employee and finance costs. Average gross refining margin for the first half of the fiscal dropped to $6.08 per barrel from $7.19 a barrel a year ago, the firm said in the stock exchange filing.
Gross refining margin is the profit realized from processing one barrel of crude.
The state-owned refiner, which had a dispute with the Odisha government over the promised value added tax relief for refinery products from its Paradip refinery earlier this year, has since settled the dispute.
“The Odisha government shall provide an interest-free loan of Rs700 crore a year for 15 years in quarterly instalments of Rs175 crore from 1 April 2016 repayable after 15 years,” the company note said.