IOC Q2 net at Rs 3,696 cr up 18%, refining margin falls

New Delhi, Oct 27 (IANS) State-run oil marketer India Oil Corp (IOC) on Friday posted a 18.4 per cent rise in net profit at Rs 3,696.29 crore for the second quarter ended September over the same period last year, mainly on the back of higher sales.

The company had reported a net profit of Rs 3,121.89 crore in the same quarter of the last fiscal.

IOC's revenue for the quarter in consideration increased to Rs 1,10,637 crore as compared to Rs 1,00,260 crore in the corresponding quarter of last year, the company said in a stock exchange filing following a meeting of its board of directors.

The gross refining margin (GRM), on converting each barrel of crude to petroleum products, fell during the second quarter to $6.08 per barrel, as against the GRM of $7.19 in the same quarter last year.

The refiner said it has accounted for a lower budgetary support of Rs 1,415.63 crore for the first half of the current fiscal (April-September), as compared to Rs 2,784.64 crore received in the corresponding period of last year.

Indian Oil said that its dispute with the Odisha government on interest free loan agreement was resolved during the quarter.

"During the last quarter (Q2), the company has settled its liability for entry tax in Haryana, including interest, and consequently, an amount of Rs 2808.05 crore has been written back," it said.

Following the revised pay and allowances of employees announced earlier this month, IOC said on Friday that it has provided for an estimated liability on the account.

"The pay revision implementation is in process and the company does not anticipate any major change in liability on this account," the oil marketer said.

In a separate filing, IOC said that the Petroleum Ministry's Senior Advisor Urvashi Sadhwani has been appointed to the company board as the government nominee with effect from Friday.

The IOC stock closed on Friday at Rs 414.20 a share, down Rs 21.05, or by 4.84 per cent, on its previous close on the BSE.

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