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IndianOil has reported a ₹3,246.93-crore net profit for Q2 FY19, 12.15 per cent lower than the ₹3,696.29 crore it had reported in Q2 FY18.
Total income stood at ₹1,52,607.27 crore (₹1,11,238.85 crore), up 37.19 per cent.
The gross refinery margin (GRM, a measure of the gain per barrel of crude oil processed) declined to $6.79 from $7.98.
The margins were lower despite a spurt in inventory gains driven by an increase in crude oil prices. “The inventory gains during the second quarter of financial year 2018-2019 stood at ₹4,408 crore. In the same quarter of last fiscal, the inventory gains were ₹1,056 crore,” IndianOil Chairman Sanjiv Singh told reporters here on Friday. Profits were driven down by a fall in the value of the rupee. There was a forex loss of ₹2,600 crore in Q2, said the company’s Director (Finance) AK Sharma. IndianOil had incurred a forex loss of ₹ 230 crore in the same quarter of FY18.
The company’s profit was also hurt by lower margins recovered from processed products. IndianOil benchmarks the price of its products to global prices. These prices were muted for most of the products, but the price of crude was on the rise, hampering margins, a company official said.
IndiaOil’s sales volumes in Q2, including exports, were 21.6 million tonnes (20.9 mt).
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