IOC posts Rs 3,122 crore net profit

Income from operations rose 3% to Rs 1,00,274 crore from a year before

Indian Oil Corporation (IOC) reported a net profit of Rs 3,122 crore for the July-September quarter, against a net loss of Rs 450 crore in the same period last year.

“Last year, we had an inventory loss of Rs 5,134 crore; it has come down to Rs 686 crore this year. Better petrochemical margins also played a role,” B Ashok, chairman of the government-owned company, told journalists. 

Income from operations rose three per cent to Rs 100,274 crore from a year before. The gross refining margin was $4.32 a barrel, from $0.9 a barrel in the same period of 2015-16. The refining throughput was 15.6 million tonnes; of the pipeline network, almost 21 mt. 

“Our physical performance continues to be very good. As on September 30, debt stood at Rs 41,885 crore, as compared to Rs 525,46 crore at the same time the last financial year,” Ashok added.

Product sales, including exports, was 19.7 mt. The subsidy burden on kerosene was Rs 1,453 crore; on LPG, Rs 768 crore. Asked about competition from the newly aggressive foray of private players in the retail segment, the chairman said: “Competition is good for all of us. We have already lined up our expansion plans and will set up 1,200 retail outlets this year.” 

As the pricing (for petrol and diesel) is now market-determined, new players will not get too much opportunity to experiment on this, he added.