With petrochemical business margin and inventory gains, State-owned largest oil marketing major Indian Oil Corporation (IOC) on Monday posted 25 per cent jump year-on-year (YoY) growth in net profit for the quarter ended June 30 at Rs8,270 crore as against Rs6,590 crore in the year-ago period.
“The petrochemical business margin and inventory gains have been the driving force behind our June-quarter profit. Though our gross refining margin was little down to $9.98 per barel, we realised the highest first quarter profit this quarter,” IOC Director (Refineries) Sanjiv Singh told reporters here.
Meanwhile, the IOC board has also recommended issue of bonus shares in the ratio of one equity share of Rs10 for one existing equity share of Rs10 each. “The post bonus issue, the company's reserve will come down to Rs85,000 crore from Rs90,000 crore as Rs2,427 crore each (1:1) will go for bonus shares,” the official said.
The company’s net profit of Rs8,268.98 crore, or Rs34.90 a share, in April-June was 25.46 per cent higher than Rs6,590.83 crore, or Rs27.81 per share, in the same period a year ago, he said.
Petrochem margin, however, rose Rs446 crore to Rs2,224 crore in Q1. Also there was an inventory gain of Rs7,479 crore. The company earned $9.98 on turning every barrel of crude oil into fuel in April-June quarter as compared to a gross refining margin of $10.77 per barrel. While refinery throughput rose 18.7 per cent to 16.099 million tonnes, domestic fuel sales was up 5.3 per cent to 20.415 million tonnes. Singh said all of its Rs1,331.69 crore revenue loss on sale of PDS kerosene during the quarter was reimbursed by the Government. Drop in oil price meant its revenue fell from Rs1,14,200.24 crore for the quarter ended June 30, 2015 to Rs1,07,670.95 crore in first quarter of current fiscal.