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IndianOil Corporation Limited has reported a multi-fold rise in consolidated net profit for the second quarter of FY21. In a statement to the BSE, IndianOil reported a consolidated net profit at ₹6,164.70 crore for the quarter, significantly higher than the ₹ 370.44 crore profit reported in the year-ago period.
The higher profits are on account of a ₹7,400-crore inventory gain in the quarter under review compared to a ₹1,807-crore inventory loss in the same period last year.
Speaking to reporters after the IndianOil Board meeting, Chairman Shrikant Madhav Vaidya said: “The gross refinery margin (GRM) for the second quarter is about $8.62 per barrel. It was at $1.28 a barrel in the corresponding period (ending September 30, 2019.”
The GRM is an assessment of the average gain or loss per barrel of crude oil processed by the company.
Higher profits this time are also attributed to foreign exchange gains, which stood at ₹672 crore during the quarter compared to a loss of ₹1,135 crore in the same quarter of last fiscal.
Consolidated income for the period under review declined to ₹1,17,871.16 crore, down from ₹1,35,219.28 crore in the comparable months of last year. This was because of lesser demand for petroleum products because of Covid-19 lockdowns.
“Diesel consumption has been 3-4 per cent lower than pre-COVID levels, petrol has already crossed the pre-Covid levels. As on October 28, petrol is 3.34 per cent higher than the Pre-Covid levels and diesel is about 0.5 per cent higher,” Vaidya said. He noted that consumption for auto fuels is expected to be back to pre-Covid levels within a few months.
Commenting on aviation turbine fuel consumption, he said, “ATF continues to be still hit badly. It is about 48 to 50 per cent lower than pre-Covid levels as of last week of October. Other than that, the situation is looking better.”
Vaidya said that the IndianOil Board approved projects worth around ₹5,000 crore during the meeting on Friday.
This included a go-ahead for Stage-I implementation of a 60,000-tonne per annum poly butadiene rubber plant at Panipat Naphtha Cracker Complex. This will be utilising the excess Butadiene potential available. The estimated project cost is around ₹1,200 crore.
“Setting up of the PBR plant by IndianOil will reduce the country’s import dependence and save ₹ 640 crore per annum of forex outflow…PBR unit installation will enhance corporation gross margin by ₹240 crore and will increase the petrochemical intensity index of the Panipat refinery from 15.7 per cent to 16.8 per cent,” Vaidya said.
IOC cuts refinery run-rate by one-fourth as fuel demand evaporates
The IndianOil board also gave the investment approval for the augmentation Salaya-Viramgam and Viramgam-Koyali sections of Salaya-Mathura Pipeline to ensure uninterrupted supply of crude oil to Gujarat Refinery. This is in line with the plan to increase the capacity of the Gujarat refinery.
We are absolutely on track for supplying BS-VI fuel from April 1: IOC Chairman
Among other decisions, the IndianOil Board has approved an investment of around ₹1,400 crore for setting up of Fully automated lube blending plant of 4,50,000-metric tonne per annum capacity at Chennai. On commissioning of this blending plant, the total lube blending capacity of IndianOil would touch 900 TMTPA.
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