Indian Oil Q1 net profit drops 47% to Rs 3737 cr on lower refining margins

State-run Indian Oil Corporation (IOC) has posted a 47.3 per cent drop in consolidated net profit for the first quarter of the financial year 2019-20 to Rs 3,737.50 crore as compared with Rs 7,092.42 crore during the same time last fiscal year, owing to lower refining margin and inventory gains.

The company’s total income almost remained flat with an increase of only 0.48 per cent during the quarter under review to Rs 1.53.11 trillion versus Rs 1.52.38 trillion during the April-June quarter of 2018-19. The gross refining margin (GRM) during the first quarter of FY19-20 was $4.69 per bbl as compared to $10.21 per bbl in the corresponding quarter of the previous financial year, IOC Chairman Sanjiv Singh said in a statement. During the April-June period, the company had an inventory gain of Rs 2,362 crore against Rs 7,065 crore during the first quarter of the previous financial year.