State-owned Indian Oil Corp (IOC) on Thursday reported a 84.33% drop in second quarter net profit on the back of slump in refinery margins and inventory losses. Net profit in July-September at Rs 563.4 crore was 84.33 % lower than Rs. 3596 Cr. net profit in the year-ago period.
The fall was despite lower tax cost, which was Rs 251 crore for the quarter against Rs 1,783.3 crore in the June quarter.
“Higher inventory losses led to lower profits this time. Inventory losses for the quarter stood at Rs 1,807 crore against Rs 2,300 crore of gains in the June quarter,” Chairman Sanjiv Singh said at a press conference.
The calculated gross refining margin (GRM) stood at $1.25 a barrel for the September quarter. The company had reported GRM at $4.69 a barrel in the April-June period.
The revenue during the quarter fell 15.1 percent sequentially to Rs 1.11 lakh crore.
EBITDA reduced 57.2% QoQ to Rs 3572 Cr.
EBITDA margin contracted 320bps QoQ to 3.2 % in Q2FY20.