Three-Fold rise in net profits fails to save Indian Oil share price

By: |
January 30, 2020 4:51 PM

The share price of Indian Oil Corporation (IOC) fell by 1.45% to end the day’s trade at Rs 116.85 even as the company reported a three-fold rise in net profit to reach Rs 2,339 crore for the quarter ending December 2019. Indian Oil, however, fell short of street estimates. In the same quarter last year, […]

Indian Oil started the day’s trade after opening at a price of Rs 120 and ended the day falling to Rs 116.85 to close in the red.

The share price of Indian Oil Corporation (IOC) fell by 1.45% to end the day’s trade at Rs 116.85 even as the company reported a three-fold rise in net profit to reach Rs 2,339 crore for the quarter ending December 2019. Indian Oil, however, fell short of street estimates. In the same quarter last year, IOC had reported a profit of Rs 716 crore. Revenue was up by 11.6% to Rs 1,24,615 crore.

Indian Oil started the day’s trade after opening at a price of Rs 120 and ended the day falling to Rs 117 to close in the red.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was at Rs 6,650 crore as against estimates of Rs 6,897 crore. However, EBITDA was up from Rs 3,572 crore in the second quarter of Financial year 2020. In a filing to Sensex, IOC reported a consolidated income of Rs 1,47,431 crore down from Rs 1,60,137 crore in the same quarter last year.

IOC reported that gross refining margin between April-December at $3.43 a barrel versus $5.83 per barrel. “Expenses for the period April – Dec 2019 includes foreign exchange loss of Rs 1,225.28 crore (April – Dec 2018: Rs 2,340.45 crore). For period Oct-Dec 2019, foreign exchange loss is Rs 181.90 crore,” IOC said in the filing.

Meanwhile, benchmark indices S&P BSE Sensex ended down by 284.84 points, 0.69 percent lower at 40,913.82, while the broader Nifty index settles at 12,035.80, down 94 points or 0.77 percent.

Indian Oil has dropped down in the last three months from a price of Rs 147 per share in October 2019 to now trade at Rs 117. Meanwhile, oil stocks have been falling as the death toll due to Coronavirus shot up to 170 people in China and more airlines canceled flights to the country.

Reuters reported that Brent was down 24 cents, or 0.4%, to $59.57 a barrel by 0152 GMT, having risen 0.5% on Wednesday. U.S. crude was down 26 cents, or 0.5%, to $53.07 a barrel.

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