Industry

Indian Oil profit beats estimates on inventory gains, lower expenses

Net profit for the state-owned company rose to ₹62.27 billion ($842.14 million) in the three months ended Sept.30, from ₹5.63 billion a year earlier.   | Photo Credit: The Hindu

Indian Oil Corp Ltd, the country's top refiner, reported an eleven-fold rise in second-quarter profit on Friday that beat analysts' estimates on inventory gains and lower expenses.

The company, along with subsidiary Chennai Petroleum , controls about a third of the country's 5 million-barrels-per-day (bpd) refining capacity.

Net profit for the state-owned company rose to ₹62.27 billion ($842.14 million) in the three months ended Sept.30, from ₹5.63 billion a year earlier.

Also read | IOC Q1 profit almost halves, revenue slides

Analysts on average had expected a profit of ₹28.20 billion, according to Refinitiv data.

Shares of the company were up 2.1% as of 0554 GMT.

Total expenses fell 16.6%, while the change in inventories for finished goods, stock in trade and work in progress were at a gain of ₹16.37 billion against a loss of ₹60.66 billion a year ago.

For the April-September period, average gross refining margin, which is the difference between the cost of crude oil processed and the prices of refined products, rose to $3.46 per barrel from $2.96 per barrel($1 = ₹73.9430).

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Printable version | Dec 5, 2020 8:09:09 AM | https://www.thehindu.com/business/Industry/indian-oil-profit-beats-on-inventory-gains-lower-expenses/article32982262.ece

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