State-owned Indian Oil Corporation Limited (IOC) on Friday reported a thirteen-fold rise in consolidated net profit at Rs 6,025.81 crore for the second quarter ended September 30, 2020, helped by inventory gains. The oil marketing company had posted a net profit of Rs 468.04 crore in the corresponding quarter last year.
Consolidated revenue declined 13.39 per cent to Rs 1.17 lakh crore as compared to Rs 1.35 lakh crore in the same period last year.
During July-September quarter, other income increased to Rs 1,157.99 crore from Rs 449.09 crore in the corresponding period last year.
On the standalone basis, the oil firm's net profit surged 10 times to Rs 6,227.31 crore, from Rs 563.42 crore in the same period a year back. Revenue from operations was lower at Rs 1.15 lakh crore as compared to Rs 1.32 lakh crore a year ago.
Average Gross Refining Margin (GRM), the difference between the cost of crude oil processed and the prices of refined products, for April-September 2020 was $3.46 a barrel compared to $2.96 per barrel in the year ago period. The core GRM or the current price GRM for the period April-September 2020 after offsetting inventory loss/ gain stood at $1.57 per barrel.
Fuel sales stood at 17.7 million tonnes was 16 per cent higher than the preceding quarter but was 12 per cent lower than 20.17 million tonnes of products sold in July-September 2019. IOC's refineries processed almost 14 million tonnes of crude oil in Q2, up from about 13 million tonnes in April-June, but lower than 17.5 million tonnes a year ago.
The board of state-owned oil company has also approved the proposal for borrowings upto Rs 20,000 crore during a financial year through private placement of bonds or debentures in one or more tranches. In the last Annual General Meeting, shareholders had approved proposal to borrow Rs 1,65,000 crore.
Meanwhile, shares of Indian Oil were trading 2.61 per cent higher at Rs 80.50, against previous closing price of Rs 78.45, on the Bombay Stock Exchange.