Indian Oil Corporation Limited (IOC) on Friday reported a 47 per cent fall in its standalone net profit at Rs 1,910.84 crore in June quarter of FY21 as against Rs 3,596.11 crore in the same period of the last financial year. The profit of the country's largest oil firm declined as coronavirus-induced lockdown negatively hit fuel demand and shrank refining margins. Income from operations slipped to Rs 88,936.54 crore in April-June period from Rs 150,136.70 crore a year back.
"The outbreak of coronavirus (Covid-19) globally and in India has impacted businesses and economic activities in general. The spread of Covid-19, along with nationwide lockdown starting from March 25, 2020, has caused a serious threat to human lives and resulted in a reduction in global demand and disruption in the supply chain, which have forced the businesses to restrict or close the operations in short term," IOC said in an exchange filing.
Company's fuel sales fell 29 per cent to 15.25 million tonnes as vehicular movement remained sparse due to lockdown in the given quarter. Its refineries processed 25 per cent less crude oil at 12.9 million tonnes in Q1FY21. IOC said it lost $1.98 on turning every barrel of crude oil into fuel in the April-June period compared to a gross refining margin (GRM) of $4.69 a barrel in Q1 of 2019-20.
"The company's sales during the month of April 2020 were impacted significantly by the nationwide lockdown and consequently capacity utilisation of the plants was lower. However, the same has come back close to normal levels by the month of June 2020," it added.Also read: Reliance Industries share falls over 2% post Q1 earnings: Time to buy, sell or hold the stock?