With higher refinery margins and lower inventory losses, India's largest oil retailer India Oil Corp (IOC) on Thursday posted the net profit of Rs 3,122 crore for the second quarter of current fiscal as against a loss a year ago. “The net profit of Rs 3,121.89 crore, or Rs 6.58 per share, in the July-September period compared to a net loss of Rs 450.24 crore in the same period a year ago,” IOC Chairman B Ashok told reporters here.
“last year we had a huge inventory loss of Rs 5,134 crore, this year we had a loss of much lower proportion at Rs 686 crore,” he said, adding the refineries turned 14.3 per cent higher crude oil at 15.635 million tons in the quarter ended September 30 while sales were up 1.8 per cent to 18.465 million tons.
IOC earned $4.32 on turning every barrel of crude oil into fuel in the quarter under review, as compared to a gross refining margin of $0.90 per barrel. “Physical performance continues to be very good,” he added.
IOC reduced finance cost to Rs 615 crore from Rs 758 crore, Ashok said, adding that debt has come down to Rs 41,885 crore as on September 30 as opposed to Rs 53,404 crore at March-end.
However, AK Sharma, Director (Finance) said that the Government reimbursed all of the Rs 1,453 crore the company lost on selling kerosene below cost and Rs 768 crore on lPG.