New Delhi: Oil major Indian Oil posted a nearly 47 percent drop in net profit for Q1 of FY2020-21 at Rs 1,911 crore as compared to Rs 3,596 crore during the corresponding period of the previous financial year mainly on account of inventory losses during the current period. The PSU recorded a 40.42 percent decline in consolidated net profit at Rs 2,226.80 crore for the quarter ended June 30 in comparison to Rs 3,737.50 crore in the corresponding quarter of the previous financial year.
The revenue from operations stood at Rs 88,937 crore for the first quarter of the financial year 2020-21 (FY'2020-21) as compared to Rs 1,50,137 crore in the corresponding period of the financial year 2019-20.
“During the lockdown period, petroleum business continued its operations under the “Essential Services”. The revenue of the holding company and other consequential expenses during the period is decreased due to nationwide lockdown for Covid-19,” Indian Oil said in a release.
The oil marketing company said that sales of the holding company got impacted significantly during April due to the nationwide lockdown and consequently capacity utilisation of the plants were lower. However, the same has come back close to normal levels by June.
On an average, gross refining margin (GRM) for the quarter came at -$1.98 per barrel against $4.69 per barrel in the same period last year.
Indian Oil's Chairman SM Vaidya, said, “Indian Oil sold 16.504 million tonnes of products, including exports, during the first quarter of the financial year 2020-21. Our refining throughput for the first quarter of FY'2020-21 was 12.930 million tonnes and the throughput of the Corporation’s countrywide pipelines network was 15.017 million tonnes during the same period. The gross refining margin (GRM) during the first quarter of FY'2020-21 was $ (1.98) per bbl as compared to $4.69 per bbl in the corresponding period of the previous financial year. The core GRM for the current period after offsetting inventory loss/ gain comes to $4.27 per bbl.”
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