Indian Oil Corporation profit rises 18 pct at Rs 3,696 cr

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New Delhi | Updated: October 28, 2017 4:59:27 AM

State-run Indian Oil Corporation (IOC) reported an 18% increase in net profit for the September quarter of 2017-18 at Rs 3,696 crore compared with a profit of Rs 3,122 crore in the corresponding period of 2016-17.

Indian Oil Corporation, Indian Oil Corporation profit,  IOC chairman Sanjiv Singh, LPG subsidy,  crude oil, Goods and Services TaxIOC chairman Sanjiv Singh, while addressing the media, said the industry has witnessed a 9-10% growth in sale of petrol and a little above 3% in the sales of diesel. (Reuters)

State-run Indian Oil Corporation (IOC) reported an 18% increase in net profit for the September quarter of 2017-18 at Rs 3,696 crore compared with a profit of Rs 3,122 crore in the corresponding period of 2016-17. Revenue from operations was also up 10% at Rs 1.11 lakh crore during the quarter under review compared with Rs 1 lakh crore last year. The company sold 20.886 million tonne (MT) of products during the September quarter including exports. In the domestic market, fuel sales increased to over 19 MT from 18.46 MT while exports was up 52% to 1.877 MT. IOC chairman Sanjiv Singh, while addressing the media, said the industry has witnessed a 9-10% growth in sale of petrol and a little above 3% in the sales of diesel. The refineries of IOC converted 16.1 MT of crude oil into fuel in the second quarter compared with a throughput of 15.6 MT during the September quarter of 2016-17. The average gross refining margin during the quarter was at $7.98 per barrel compared with $4.32 a year ago. Also, the oil marketing company’s throughput for pipelines was 19.345 MT during the quarter. The company took a hit of around Rs 300 crore due to non-availability of input tax credit for certain products which are not in the ambit of Goods and Services Tax.

The company, which has inventory of 17 MT at the end of September, saw inventory gains of R1,056 crore during the quarter compared with a loss of R686 crore during the same period last year. On the subsidy side, while that for kerosene stood at Rs 540 crore during the September 2017 quarter compared with Rs 1,453 crore a year ago, LPG subsidy burden went up to Rs 1,239 crore compared with Rs 768 crore during the said periods. “This is because LPG connections have gone up whereas kerosene usage has come down,” said Singh. The government has issued more than 3 crore LPG connections under the Pradhan Mantri Ujjwala Yojana whereas many states and Union Territories such as Delhi and Punjab, among others have become kerosene-free. At the end of day’s trade, the share prices of IOC on Friday was down by Rs 21.05 apiece, or 4.84%, and closed at Rs 414.20 whereas the benchmark Sensex remained flat gaining a meagre 0.03% to close at 33,157. 22 points.

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