InvestorQ : How did Indian Oil report such a sharp growth in profits for the Dec-20 quarter?
diksha shah made post

How did Indian Oil report such a sharp growth in profits for the Dec-20 quarter?

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Aashna Tripathi answered.
7 months ago
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India’s public sector refining giant, Indian Oil Corp reported Q3 PAT up 52% at Rs.4,102 crore on the strength of lower input costs and higher crude price translation. IOCL also reported an absolutely flat 0.57% growth in gross revenues for the Dec-20 quarter at Rs.1,47,810 crore on a consolidated basis.

Not surprisingly, with the price of crude still lower on a yoy basis, the sale of petroleum products which accounts for a bulk of the revenues of IOCL was almost flat. However, the petrochemicals segment showed a sharp growth on a yoy basis. The company benefited from a slight improvement in GRMs as also better petchem margins.

Operating profits were up 49% at Rs.7,071 crore for the Dec-20 quarter on the back of 25% cut in the cost of crude oil consumed in the refineries. Operating margins expanded from 3.22% in the Dec-19 quarter to 4.78% in Dec-20 quarter. During the same period, the PAT margins also got better from 1.83% to 2.78%.

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