Indian Oil Corporation reported a ₹3,696 crore net profit for the second quarter of 2017-2018. This is 18 per cent higher than the ₹3,122 crore bottomline reported by the public sector refiner in the corresponding quarter of the last financial year.

Speaking to reporters, Indian Oil Chairman Sanjiv Singh said: “Revenue from operations for the quarter ending September 30, 2017, was ₹1,10,637 crore as compared to ₹98,708 crore adjusted for the impact of the Goods and Services Tax (GST) in the corresponding quarter of 2016-2017. This indicates a growth of 12.1 per cent in revenue.”

This is first quarter that saw the impact of GST exclusion of petrol and diesel on Indian Oil’s balance sheet.

The Director-Finance at Indian Oil, AK Sharma, said: “The impact is on account of stranded input tax credits, as inputs are taxed under GST but the output (petrol and diesel) is not.”

There is a ₹300 crore hit in the quarter under consideration because of the input credit standing and this is likely to rise to ₹2,000 crore in the full financial year, he added.

The gross refinery margin or the net gains the refiner makes per barrel of crude oil stood at $7.98 per barrel in the quarter under consideration. This stood at $4.32 per barrel in the corresponding quarter of the last financial year.

On the sidelines of the conference, an IOCL official said that the company had expressed interest in some of the oil-producing fields in the United Arab Emirates and was planning to invest in a consortium led by ONGC Videsh Limited.

There was also an inventory gain of ₹1056 crore in the quarter compared to an inventory loss of ₹686 crore. Total product sales rose to 19.009 tonnes in the quarter ending September 30, from 18.465 tonnes in the corresponding quarter of the last financial year.

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