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Indian Oil Corp (IOC) registered a 12.6 per cent decline in its Q2 FY19 net profit due to the foreign exchange losses and lower refining margins. IOC’s net profit during the July-September quarter stood at Rs 3,246.93 crores as compared to net profit of Rs 3,696.29 crores during the corresponding quarter of the previous year.
IOC Chairman Sanjiv Singh said in a press release that the company incurred a foreign exchange loss of Rs 2,600 crores during Q2 as rupee depreciated, making repayment of loans as well as crude oil purchase costlier.
According to Singh, the gross refining margin in the said quarter declined as IOC earned USD 6.79 on turning every barrel of crude oil into fuel as compared to USD 7.98 per barrel in the same period of previous fiscal.
However, sales rose 47.9 per cent to Rs 1,32,357.08 crores in the quarter under review as against Rs 89,498.77 crore during the corresponding quarter preceding fiscal. Inventory gains were reported at Rs 4,408 crores, falling 44 per cent quarter-on-quarter basis.
Sanjiv Singh added, “IOC sold 44.462 million tonnes of products, including exports, during the first six months of 2018-19. Our refining throughput for H1 18-19 was 35.483 million tonnes and the throughput of the corporation’s countrywide pipelines network was 44.217 million tonnes during the same period.”
