An Indian Oil Corporation petrol station is pictured in New Delhi. (Photographer: Amit Bhargava/Bloomberg News)

Q1 Results: IOC’s Profit Beat Estimates In April-June Period

Indian Oil Corporation Ltd.’s profit beat street estimates in the April-June period on the back of multi-fold increase in inventory gains.

Net profit of the country’s largest oil marketer by market value increased 30.9 percent sequentially to Rs 6,831 crore, according to its stock exchange filing. That’s higher than the Rs 5,334-crore consensus estimate of analysts tracked by Bloomberg. The bottomline was aided by substantial increase in inventory gains, that grew to Rs 7,866 crore, from Rs 3,442 crore in the previous quarter.

Revenue rose 10.3 percent quarter-on-quarter to Rs 1.29 lakh crore, lower than the consensus estimate of Rs 1.38 lakh crore. IOC’s foreign exchange loss also widened to Rs 1,805 crore from Rs 676 crore in the previous quarter.

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The company’s operational performance beat estimates as well. Earnings before interest, tax, depreciation and amortisation rose 14.1 percent to Rs 12,576 crore. The consensus estimate was Rs 10,455 crore. Operating margin expanded to 9.7 percent.

IOC earned $10.2 for every barrel of crude that it processed during the three months ended June compared with $9.1 per barrel clocked during the January-March period. The analysts tracked by Bloomberg had expected $8.5 a barrel.

  • Sales volume grew 4 percent to 21.62 million metric tonnes.
  • Other income rose 2.4 times to Rs 585 crore.
  • Finance cost fell 21 percent to Rs 1,031 crore.
  • Employee cost dipped 20 percent to Rs 2,369 crore.
  • Debt reduced by 23 percent to Rs 44,797 crore.

Shares of IOC closed 0.3 percent higher at Rs 165.85 apiece on the National Stock Exchange on Friday. The stock has fallen 14.3 percent so far this year, compared with the 7.3 percent decline of the S&P BSE Oil & Gas Index.

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