Indian Oil's net profit declines by 45% yoy in Q1; Gross refining margin at $4.48 per barrel

Key Highlights: 

• IOC's net profit drops 45% in Q1 on yoy basis
• Revenue from operation at Rs 128,190.50 crore
• Gross refining margin for the period was at $ 4.32 per barrel

Indian Oil Corp's (IOC) share price surged over 6% despite the company witnessing 45% year-on-year decline in its net profit for the quarter ended June 30, 2017 (Q1FY18). 

IOC recorded net profit of Rs 4,548.51 crore, down by 44.99% compared to Rs 8,268.98 crore in the corresponding period of the previous year. 

However, Q1 net profit was up by 22.25% from Rs 3,720.62 crore of the preceding quarter.

Revenue from operations were at Rs 128,190.50 crore, increasing by 19.58% year-on-year (YoY) and 4.82% quarter-on-quarter (QoQ) basis. 

A Bloomberg poll estimated net profit and revenue to be at Rs 3,110 crore and Rs 96,400 crore respectively.

Average gross refining margin for the period April - June 2017 was at $ 4.32 per barrel compared to $ 9.98 per barrel a year ago same period. 

During the quarter, IOC had budgetary support of Rs 876.38 crore lower compared Rs 1331.69 crore in previous year similar period. The company stated that this was as revenue grants and included in sales/income from operations and no under-realisation is suffered by IOC on this account. 

Also, the company has settled its liability for entry tax in the state of Haryana including interest thereon under "The Haryana One Time Settlement Scheme for Recovery of Outstanding Dues, 2017" and consequently an amount of Rs 2,808.05 crore being no provision no more required has been written back. 

At 1415 hours, share price of IOC was trading at Rs 392.10 per piece up Rs 22 or 6% on BSE.