Companies

IndianOil Q2 net plunges over 82% to ₹563 crore on inventory loss

Our Bureau New Delhi | Updated on October 31, 2019 Published on October 31, 2019

Sanjiv Singh, Chairman, IndianOil addressing a press conference along with Sandeep Kumar Gupta, Director Finance, in New Delhi on Thursday, October 31, 2019.

 

Indian Oil Corporation Limited has reported a ₹563.42 crore net profit for the quarter ending September 30, 2019. This is over 82 per cent lower than the ₹3,246.93 crore net profit reported by the company in the corresponding period of the previous financial year.

“The variation is largely on account of inventory loss. There was an inventory loss of ₹1,807 crore in the second quarter of the financial year 2019-2020. In the corresponding period of 2018-2019, there was an inventory gain of ₹2,895 crore,” IndianOil Chairman, Sanjiv Singh said.

The lower profits is also due to subdued global gasoline prices, Singh added.

On a per-barrel basis, the Gross Refinery Margin (gain per barrel of crude oil processed) stood at $1.28 a barrel during the quarter under review. IndianOil had reported a GRM of $ 6.79 a barrel during the corresponding quarter of the preceding fiscal.

Core GRM (the gain per barrel of crude oil processed without the inventory loss or gain) stood at $3.99 per barrel in the quarter ending September 30, 2019. This stood at $ 5.88 a barrel in the quarter ending September 30, 2018.

Revenue from Operations during the quarter under review stood at ₹1,32,376 crore compared to ₹1,51,567 crore in the corresponding quarter of the financial year 2018-2019.

Commenting on the aim to roll-out cleaner Bharat Stage VI grade auto fuel from April 1, 2020, Singh said, “We may meet the target of a nationwide roll out of BS VI grade fuel even before April 1. We have already started supplying BS VI grade fuel in Delhi-National Capital Region, which has commands around 10 per cent of the nationwide consumption.”

Taking a jibe at auto manufacturers that have been crying foul about the strict deadlines for roll-out of vehicles with better emissions, Singh said, “We have been supplying Delhi-NCT with BS-VI grade fuels for over a year now, how many BS-VI compliant cars do you see on the road?”

Published on October 31, 2019
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