Indian Oil Corporation (IOC) shares slipped as much as 4.42 per cent to Rs 140.30 apiece on the BSE on Friday after the company reported 83 per cent year-on-year (YoY) decline in profit before tax (PBT) at Rs 814.48 crore for the quarter ending September, owing to higher inventory losses and a decline in refinery margin. It had recorded Rs 4,805.74 crore PBT during the same period last year.
The company’s net profit (profit after tax) came in at Rs 563.42 crore, as against Rs 3,246.93 crore during the same period in fiscal year 2018-19. “The decline in profit during the quarter was mainly on account of inventory loss against an inventory gain during the previous year,” said Sanjiv Singh, chairman of IOC, said at a press conference on Thursday. CLICK TO READ FULL REPORT
Revenue from operations declined by 12.7 per cent to Rs 1.32 trillion, as against Rs 1.51 trillion during the same time a year ago. Gross refining margin (GRM) was $1.28 a barrel during the quarter versus $6.79 a barrel a year ago. The GRM during the first half of year 2019-20 was $2.96 a barrel, as compared to $8.45 a barrel in the corresponding period of a year ago. Singh said one major reason for lower GRMs during the current fiscal was due to lower cracks.
Further, the IOC chairman indicated that the company’s interests on the upcoming stake sale process by the government in Bharat Petroleum Corporation (BPCL) would depend on the offer by the government.
During the past six months, IOC has seen 9 per cent growth in gasoline, 4.4 per cent in liquefied petroleum gas, and 1 per cent rise in diesel sales.
At 10:13 am, the stock was trading nearly 3.50 per cent lower at Rs 142 apiece on the BSE as against 0.15 per cent rise in the S&P BSE Sensex.