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Indian Oil Corporation Ltd (IOC) on Wednesday reported a nearly seventeen-fold rise in standalone net profit to ₹21,836 crore for the financial year ended March 31,2021.
In the previous fiscal year, Indian Oil had made a profit of ₹1,313 crore. The public-sector firm attributed the sharp rise in bottomline to higher inventory gains and petrochemical margins.
The firm’s annual revenue from operations, however, fell year-on-year by over 9 per cent to ₹5,14,890 crore. This was a result of the fall in overall fuel demand due to Covid-19, Indian Oil Chairman SM Vaidya said.
Indian Oil’s board also declared a final dividend of ₹1.50 per share, at 15 per cent on the paid up equity share capital for the financial year 2020-21. This follows the announcement of interim dividends of ₹7.5 per share in January and ₹3 per share in March.
The standalone net profit for the January-March quarter was ₹8,781 crore as compared to a loss of ₹5,185 crore during the corresponding quarter of the previous year.
Annual crude processing and pipeline throughput fell 10 per cent to 62.351 million tonnes and 76 million tonnes respectively, Vaidya said. However, the firm raised the length of its pipeline network by 2.3 per cent to 15,007 km in 2020-21.
Average GRM
IOC’s overall domestic sales fell by 11 per cent during 2020-21 to 72.71 million tonnes. The sale of petrol fell by 17 per cent, diesel by 14 per cent, and ATF by 52 per cent. Domestic sales of LPG saw a 4.7 per cent growth.
Even as overall revenue fell, the firm’s contribution to the central exchequer in 2020-21 rose 60 per cent to ₹1,53,827 crore, Vaidya said. Indian Oil’s contribution to states on the other hand fell by 1.2 per cent to ₹84,959 crore.
Further, the firm’s annual revenue from subsidy payouts fell 26 per cent to ₹4,344 crore. Claims through Direct Benefit Transfer of LPG scheme fell 87 per cent to ₹1,660 crore, Indian Oil said.
Average Gross Refining Margin (GRM) for the year is $5.64 per barrel, as compared to $0.08 per barrel for the previous year. The current price GRM for 2020-21 after offsetting inventory gains comes to $2.31 per barrel.
“Demand destruction due to the second wave is not as much as last time,” Vaidya said. “The refinery run for April has been 96.1 per cent while for May 1-17 it has been 84 per cent.” In comparison, the overall refinery run rate for 2020-21 was 89.5 per cent.
The firm has set a capital expenditure target of ₹26,000 crore for the ongoing financial year, Vaidya added.
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