State-owned oil marketing company Indian Oil Corporation (IOC) on Thursday reported 82.65 per cent year-on-year decline in standalone net profit at Rs 563.42 crore for the second quarter ended September 30, 2019, on the back of lower refining margins as well as inventory loss. On sequential basis, profit nosedived 84.33 per cent to Rs 3,596.11 crore in June quarter.
"The oil and gas company had posted standalone net profit of Rs 3,246.93 crore in the same quarter last year," IOC said in a filing to the Bombay Stock Exchange.
The company's revenue from operations dipped 12.66 per cent to Rs 1.32 lakh crore in the second quarter of current financial year, compared to Rs 1.52 lakh crore in the year-ago period, dented by decline in fuel consumption amid a slowing economy.
Total expenses of the company declined 10.8 per cent to 1.32 lakh crore as against Rs 1.48 lakh crore in the year-ago period. This included a foreign exchange loss of Rs 1,135.3 crore during July-September period versus Rs 2619. 72 crore in the same quarter last year, the company said.
During the quarter under review, the average gross refining margin (GRM) stood at $2.69 per barrel against $8.45 per barrel in corresponding quarter last year.
Indian Oil's operating profit dipped 57.22 percent to Rs 3,572 crore on sequential basis. The operating margin narrowed to 3.20 percent versus 6.35 percent in the June quarter.
On the consolidated basis, the company posted net profit of Rs 468.04 crore against total revenue of Rs 1.35 lakh crore.
The company said it accounted for budgetary support of Rs 944.41 crore during April-September period as revenue grant on sale of superior kerosene oil public distribution system (PDS) included in revenue from operations and no under-realisation was suffered by the company on this account.
Reacting to weak Q2 earnings, shares of Indian Oil Corporation closed 0.20 per cent lower at Rs 146.80 apiece on the BSE on Thursday.
Edited by Chitranjan Kumar