Indian Oil reports Rs 6,235 crore consolidated net profit in June quarter

Earnings from petroleum products lower than same months of last year

Indian Oil Corporation (IOCL) reported a Rs 6,235.39 crore consolidated net profit for the second quarter of the financial year 2021-22. This is marginally higher than the Rs 6,164.70 crore profit reported by the company in the same period of the previous financial year.

But total income during the period under review reported a significant increase to Rs 1,72,646.31 crores from Rs 1,17,870.77 crores in the quarter ending September 2020.

On a segment-wise basis, IndianOil reported lower gains on petroleum products (largely petrol and diesel) compared to the same period last year. Profit before tax, interest income, finance costs, dividend, and exceptional items from petroleum products, stood at Rs 6,073.68 crores in the quarter ending September 2021, down from Rs 7,252.91 crores in the comparable quarter ending September 2020. Earnings from petrochemicals on the other hand improved to Rs 1,609 crores during the period under review, from Rs 929.26 crores in the comparable months of the previous year.

It is believed that IndianOil, like other public sector undertaking oil marketing companies, is taking a hit on their petrol and diesel retailing margins. This is being done in line with verbal directives from the Ministry of Petroleum and Natural Gas to lower the impact of rising crude oil prices on consumers. There is also a limit on the gains that IndianOil is making through the retail of Liquefied Petroleum Gas (LPG) cylinders.

In addition to the quarterly results, the IndianOil Board also declared an interim dividend of Rs 5 per equity share (face value of Rs 10 per equity share) during its meeting on Saturday. This Interim Dividend would be paid to eligible shareholders on or before November 29, 2021. The Board has fixed November 12, 2021, as the 'record date' for the purpose of ascertaining the eligibility of shareholders for payment of interim dividends.

According to IndianOil Chairman, S M Vaidya said, “IndianOil sold 40.506 million tonnes of products, including exports, during the period April – September 2021. Our refining throughput for first six months of FY 2021-22 was 31.996 million tonnes and the throughput of the Corporation’s countrywide pipelines network was 39.408 million tonnes during the period.”

The gross refining margin (GRM), or gain per barrel of crude oil processed, during the period April – September 2021 was $ 6.57 per barrel as compared to $ 3.46 per barrel in the corresponding period of the previous financial year.

“For the second quarter of the financial year 2021-22, IndianOil's product sales volumes, including exports, was 20.181 million tonnes. The refining throughput was 15.277 million tonnes and the throughput of the Corporation’s countrywide pipelines network was 19.533 million tonnes during the quarter,” Vaidya added.