IOC net profit doubles to over Rs 10K cr
New Delhi   28-May-2016

The country’s largest oil retailer Indian Oil Corporation Ltd (IOC) on Friday posted a record net profit of Rs 10,399.03 crore in 2015-16, nearly double of Rs 5,273.03 crore in FY15 to become nation’s second most profitable PSU. This is despite its total income from operations dropping by 19.86% to Rs 3,50,603.09 crore in FY16 against Rs 4,37,524.23 crore in FY15.

Attributing the reasons for highest-ever profit, IOC Chairman B Ashok said, “We had an outstanding year with record profits. Few significant things have contributed to this – our physical performance has improved, the company has cut down its costs and inventory losses have been less. The inventory losses has also came down from Rs 17,000 crore from previous year to Rs 9,000 crore.”

However, the company posted an 80.3% drop in its fourth quarter net profit at Rs 1,235.64 crore for FY 2016 against Rs 6,285.35 crore in January-March 2015.

“The fourth quarter net profit was down because it incurred an inventory loss of Rs 3,335 crore in the fourth quarter of FY16 against Rs 871 crore in the same quarter last year. It impacted its net prfoit by Rs 2,464 crore. At the same time, it booked about Rs 1,494 crore of impairment losses,” he said.

The company had reported the highest profit of Rs 10,200 crore in 2009-10 when crude prices were at peak. The government-owned company has reported a gross refining margin of $5.06/barrel in FY16 against $0.27/barrel in FY15.

The inventory losses in FY16 were down 45.39% at Rs 9,731 crore against Rs 17,822 crore in FY15. The company sold 5.49% more petroleum products in FY16 at 80.7 million tonnes (MT) in FY16 against 76.5 MT in FY15.

In FY16, IOC’s refinery throughput stood at 56.694 MT and its pipeline network ferried 79.824 MT of crude oil and products.

HPCL March-quarter net drops 28% to Rs 1,553 cr
Hindustan Petroleum Corporation Ltd (HPCL) on Friday reported a 28% drop in its fourth quarter net profit on provisioning for rise in rentals and foreign exchange losses. The net profit of Rs 1,552.94 crore in January-March 2016 was 28.18% lower than Rs 2,162.39 crore during the corresponding period last year. “The profit was lower as the company provisioned Rs 215 crore for rise in lease rental by the Delhi government,” M K Surana, chairman and managing director HPCL said.

BHEL Q4 profit drops 60% to Rs 360 cr
State-run power equipment maker BHEL’s standalone net profit declined 59.5 per cent to Rs 359.58 crore in the quarter ended March 31, 2016, due to lower income from operations. The company had posted a net profit of Rs 888.35 crore in the corresponding quarter of 2014-15. Total income from operations fell by 21.5 per cent to Rs 10,004.77 crore during the January-March quarter 2015-16 compared to that of Rs 12,745.19 crore in the same period of previous fiscal.