IOC Profit Slides 45% in Q1 on Inventory Losses
New Delhi: Indian Oil Corp, the nation’s largest refiner and fuel retailer, has reported a 45% drop in April-June quarter on sharp inventory losses as oil prices slipped. Profit fell to ₹ 4,549 crore from ₹ 8,269 crore in the year-ago quarter. Revenue rose 19.6% to ₹ 1,28,191 crore. The company suffered an inventory loss of about ₹ 4,000 crore in the quarter against a gain of ₹ 7,500 crore in the year-ago period. The gross refining margin shrunk to $4.32/barrel from $9.98/barrel a year ago. The company sold 22.5 million tonnes of products during the quarter. Shares in Indian Oil, valued at ₹ 1,88,000 crore, closed 4.6% up on Thursday when the benchmark Sensex ended down 0.74%.
Indian Oil has requested state governments to defer value added tax (VAT) on its products in order to partly offset the hit the company is taking in terms of stranded input credit due to the rollout of the Goods and Services Tax (GST), chairman Sanjiv Singh said.