State-run Indian Oil Corporation (IOC) has posted a 12.5 per cent drop in net profit for the second quarter of the financial year 2018-19 to Rs 33.26 billion, compared to Rs 38.05 billion during the same period last year. The drop in net profit was owing to the losses on foreign exchange expenses and rise in raw material costs.
However, during the April to September quarter of the current financial year, the company's total income was seen at Rs 1.55 trillion, up 38 per cent compared to Rs 1.12 trillion during the corresponding quarter of 2017. The foreign exchange loss for the quarter stood at Rs 26 billion, while it amounted to only Rs 2.3 billion in the second quarter of 2017-18.
During the quarter, the company clocked an inventory gain of Rs 44 billion versus Rs 10.5 billion last year. In the April-September period, the gross refining margin of IOC was $6.79 a barrel, as against $7.98 a barrel during the same period last year.
The company said on Friday that the impact of absorbing the cut of Rs 1 a litre in diesel and petrol prices, which started on October 4 following the government's decision, would be seen from the third quarter. The impact of this decision on the company's revenue is expected to be Rs 22 billion during the current financial year.