04 October 2018, News Wires — Indian Oil Corporation(IOC), the nation’s largest fuel retailer, today posted a 12.5 per cent dip in net profit for the quarter ended September on the back of foreign exchange expenses and raw material costs.
Sanjiv Singh, Chief Executive Officer (CEO) and Chairman of IOC said that the company will take a hit of Rs 2,200 crore due to the Re 1 cut it initiated earlier this month, on the direction of the government.
He added that the fuel retailer has not recovered the hit yet as recovery of the loss was not the intention behind the cut.
The company reported a net profit of Rs 3,326 crore for the quarter as compared a net profit of Rs 3,805 crore posted in the same quarter last financial year.
According to Singh, the dip in profit is attributed to lower Gross Refinery Margins recorded in the quarter and on account of increased foreign exchange expenses.
IOC’s GRM went down to $6.79 in the second quarter of the present financial year, as compared to a GRM of $7.98 recorded in the corresponding quarter a year ago.
The company recorded an inventory gain of Rs 4,408 crore in the second quarter as compared to a gain of Rs 1,056 crore recorded in the corresponding quarter a year ago.
Total income of the company, however, rose 38 per cent to Rs 155,687 crore during the September 2018 quarter from 112,887 crore posted in the corresponding quarter last fiscal.
IOC said its average Gross Refining Margin (GRM) during the six months ended September 2018 stood at $8.45 per barrel as compared to GRM of $6.08 per barrel in the same period last fiscal.
The company’s share price at the Bombay Stock Exchange (BSE) closed at Rs 148.20, down 4.85 per cent as compared to previous close.