IOC Q1 net profit declines 47% to Rs 3,596 crore on lower refining margin

State-run oil marketing company Indian Oil Corporation (IOC) on Wednesday reported 47.36 per cent year-on-year decline in standalone net profit at Rs 3,596.11 crore for the first quarter ended June 30, 2019, on the back of lower refining margins. On sequential basis, profit dropped 41 per cent to Rs 6,099.3 crore in March quarter.

 "The oil and gas company had posted standalone net profit of Rs 6,831.13 crore in the same quarter last year," IOC said in a filing to the Bombay Stock Exchange.

The company's revenue rose marginally at Rs 1.50 lakh crore from Rs 1.49 lakh crore in the year ago quarter and Rs 1.45 lakh crore in March quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) declined 23.2 per cent on quarter-on-quarter basis to Rs 8,349.8 crore. EBITDA margin slipped to 5.5 per cent from 7.5 per cent in March quarter.

IOC's foreign exchange gains stood at Rs 91.75 crore during April-June period, the company said.

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During the quarter under review, the average gross refining margin (GRM) stood at $4.69 per barrel versus $10.21 per barrel in corresponding quarter last year.

On the consolidated basis, the company posted net profit of Rs 3,737.50 crore against total revenue of Rs 1.53 lakh crore.

The company said it accounted for budgetary support of Rs 656 crore during the quarter against Rs 1,136 crore in the same quarter last year 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.

Despite weak Q1 result, shares of Indian Oil Corporation closed 4.31 per cent higher at Rs 139.30 apiece on the BSE on Wednesday. The stock hit an intra-day high and low of Rs 140.30 and Rs 132, respectively.

Edited by Chitranjan Kumar

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