IOC Q1 profit soars on big inventory gains

The country’s largest public sector refiner Indian Oil Corporation on Friday reported more than a three-fold jump in its first quarter standalone net profit to Rs 5,941 crore due to higher inventory gain and better petrochemical margins.

The company had reported a net profit of just Rs 1,911 crore in the April-June quarter of FY21 as falling crude prices then resulted in big inventory losses.

The revenue from Operations of IndianOil in Q1 FY22 stood at Rs 1,55,056 crores as compared to Rs 88,939 crores in the corresponding quarter of FY21.

Presenting the company financials, IndianOil Chairman, S M Vaidya, said, “IndianOil sold 20,325 million tonnes of products, including exports, during the first quarter of financial year 2021-22. Our refining throughput for Q1 2021-22 is 16.719 million tonnes and the throughput of the Corporation’s countrywide pipelines network is 19.875 million tonnes during the same period.”

The gross refining margin (GRM) during the first quarter of the year stood at US$ 6.58 per barrel as compared to US$(1.98) per barrel in the corresponding period of the previous financial year.

Vaidya said that oil is gradually returning to normal after the big pandemic hit and diesel sales may return to pre-Covid levels by Diwali this year while refinery throughout may increase to 100 per cent level in another quarter.