Indian Oil net profit declined 47% to Rs 1,911 crore in the June quarter.

Indian Oil’s revenue and profit fell due to poor fuel demand

The country’s top refiner Indian Oil Corporation reported a net profit of Rs 1,911 crore in the first quarter (April-June), a decline of 46.85 percent from the same period last year, when the company made a profit of Rs 3,596 crore. Revenue from operations declined to Rs 88,937 crore during the quarter as compared to Rs 1.5 lakh crore a year earlier, as the coronovirus-induced lockdown reduced fuel demand.

The effect of the lockdown can also be felt in the margins of Indian Oil. The company recorded gross refining margins – from converting one barrel of oil to refined products – from $ 1.98 per barrel per barrel in June in the three months to $ 4.69 a barrel a year earlier.

However, on a sequential (quarter-on-quarter) basis, Indian Oil staged a change as the refinery saw a net loss of Rs 5,185.30 crore in the January-March quarter of the previous fiscal.

The stock of the oil company declined sharply after the results. At 2:50 pm, IOC shares were down 1.13 percent, with the shares being priced at Rs 87.55.

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