Indian Oil Corporation (IOCL) reported a net profit of Rs 563.4 crore on a standalone basis for the three months ended September 30, recording an 82.6 per cent decrease from the same period a year ago. The largest state-owned oil refining and marketing company in India attributed the fall in profit to inventory losses, stemming from fall in global oil prices.
As the retail prices of petroleum products are mapped with international rates, gradual fall of global oil prices in Q2FY20 meant that by the time IOCL sold its products after processing crude, the retail rates had dipped. The inventory loss in the quarter was Rs 1,807 crore against inventory gains of Rs 2,895 crore in the corresponding period a year ago, said IOCL chairman Sanjiv Singh.
Earnings before interest, taxes, depreciation and amortisation fell by 47.2 per cent year-on-year to Rs 3,572.2 crore as revenue from operations fell 12.8 per cent y-o-y to Rs 1.32 lakh crore. The company also received lower returns from its refinery operations as the firm earned only $1.28 from selling every barrel of refined products in the quarter, 81.1 per cent lower than Q2FY20. —FE
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