National News

Indian Oil Q1 results: Net profit falls 32% q-o-q due to dip in fuel demand, other income

In Q1 of FY22 (2021-22), during which India witnessed a second wave of COVID-19 infections, Indian Oil reported a 32% decline in net profit q-o-q at Rs 5,941 crore

Shalini Sharma
  • Indian Oil achieved a refinery run of 88.5 percent compared to 69 percent of Q1 of FY21

  • During the first quarter of FY22, Indian Oil has incurred a provisional total capex of nearly Rs 4,000 crore

 
New Delhi: In Q1 of FY22 (2021-22), during which India witnessed a second wave of COVID-19 infections, Indian Oil reported a 32 percent decline in net profit quarter-on-quarter at Rs 5,941 crore on account of a dip in fuel demand and other income. The net profit for the previous quarter (Q4 FY21) Rs 8,781.30 crore. However, in comparison to the Q1 of FY21, when a nationwide lockdown was put in place to curb COVID-19 infections, the net profit figures has registered a growth of 211 percent. The net profit for Q1 of FY21 was Rs 1,911 crore.

Revenue from Operations of Rs 1,55,056 crore was reported for Q1 of FY22 as compared to Rs 88,939 crore in the corresponding quarter of FY21. Indian Oil Chairman SM Vaidya said, "Indian Oil sold 20.325 million tonnes of products, including exports, during the first quarter of financial year 2021-22. Our refining throughput for Q1 2021-22 is 16.719 million tonnes and the throughput of Indian Oil's countrywide pipelines network is 19.875 million tonnes during the same period. The gross refining margin (GRM) during the first quarter of FY2020-21 is $6.58 per bbl as compared to $(1.98) per bbl in corresponding quarter of previous financial year. The core GRM for current period after offsetting inventory loss/gain comes to $2.24 per bbl." 

ATF demand sees growth of 147% year-on-year 

Addressing the media on Friday, the Indian Oil Chairman said that sales grew by 21 percent in Q1 of FY22 and rose from 14.4 MT to 17.4 MT. While the sale of petrol grew 32 percent during the June quarter year-on-year, diesel grew by 22 percent and petrochemicals saw an increase of 39 percent. A big jump was seen in the sale of Aviation Turbine Fuel (ATF) as it registered a growth of 147 per cent year-on-year. However, reversing the upward growth trend, LPG sale in the first quarter of FY22, registered a decline of 1.8 percent.

Indian Oil refinery run rate at 88.5%, inching closer to 90%

Vaidya said that with a recovery in overall demand, Indian Oil achieved a refinery run rate of 88.5 percent in Q1 of FY22 as compared to 69 percent in Q1 of FY21. "The recovery in the overall demand, refining and other related operational parameters have also demonstrated an encouraging turn around compared to the previous year. For the first quarter of this fiscal, Indian Oil achieved a refinery run of 88.5 percent compared to 69 percent of Q1 of FY21. In fact, the refinery run for the current month is inching closer to 90 percent," said the Indian Oil Chairman.

Indian Oil incurred capex of Rs 4,000 cr in Q1

"During the first quarter of FY22, Indian Oil has incurred a provisional total capex of nearly Rs 4,000 crore, which includes Rs 3,700 crore of standalone capex and Rs 300 crore equity investments in JVs and subsidiaries. The overall capex plan for the current year is Rs 28,500 crore," the Chairman said.

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