Indian Oil Corp skids after dismal Q2 results

The PSU OMC reported a 65% drop in average gross refining margin in April - Septermber 2019 as against April - September 2018.

Shares of Indian Oil Corporation declined 3.78% after announcing a dismal Q2 result during market hours yesterday.

On consolidated basis, net profit slumped 88.86% to Rs 370.44 crore on 13.03% decline in net sales to Rs 1,34,769.02 crore in Q2 September 2019 over Q2 September 2018.

The average gross refining margin for the period April-September 2019 was at $2.96 per barrel as against $8.45 per barrel during April-September 2018.

On a standalone basis, the net profit tumbled 82.64% to Rs 563.42 crore on 12.66% drop in net sales to Rs 132,375.69 crore in Q2 September 2019 over Q2 September 2018.

The company has accounted for a budgetary support of Rs 944.41 crore in April-September 2019 compared with Rs 2,270.03 crore during April-September 2018 as revenue grants on sale of SKO (PDS) included in revenue from operations and no under-realization is suffered by the firm on this account.

Expenses include foreign exchange loss of Rs 1,135.13 crore in July-September 2019 period over Rs 2,619.72 crore in July-September 2018.

As of 30 September 2019, the Govt of India holds a 51.5% stake in the company while Oil and Natural Gas Corporation holds a 14.2% stake in the company.

Indian Oil Corporation's segments include sale of petroleum products, sale of petrochemicals and other businesses. Its other businesses segment includes sale of gas, explosives and cryogenics, wind mill and solar power generation, and oil and gas exploration activities.

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