IndianOil profit jumps to Rs 3,683 crore
New Delhi   31-Jul-2009
IndianOil on thursday posted its highest-ever April-June quarter profit at Rs 3,683 crore, as against Rs 415 crore during the same quarter last year. The surge in profit is mainly on account of a sharp fall in crude oil prices and onetime gains. "Lower oil prices had a good impact on oil marketing companies during the quarter. We also had one-time gains in foreign exchange and inventories," said Chairman and Managing Director Sarthak Behuria. Mr. Behuria said during the quarter under review, IndianOil made an inventory gain of Rs 1,733 crore and foreign exchange gains of Rs 391 crore. Mr. Behuria said the company gained Rs 296 crore on write-back on investments, as the company had provided for a higher amount towards potential loss on sale of bonds. The actual loss turned out to be lower. Company's borrowings as on June 30 stood at Rs 33,678 crore as against Rs 44,972 crore a year earlier. Its debt-equity ratio is now down to 0.71:1 from 1.02:1 last year. IndianOil's net revenue loss in the first quarter stood at Rs 2,961 crore, as against Rs 7,321 crore a year ago. This was mainly on account of lower crude prices, which lowered the revenue losses on sale of automobile and cooking fuels at government-regulated prices, Mr. Behuria said. The company is, however, continuing to incur Rs 36 crore revenue loss every day on sale of petrol, diesel, kerosene and domestic cooking gas. The fall in crude prices dragged down petroleum product prices, thereby lowering the company's refining margins. "A fall in product prices during the quarter has resulted in a decline in our turnover," Mr. Behuria said. Its gross turnover during the quarter stood at Rs 63,521 crore as against Rs 80,735 crore a year earlier. This is despite better physical performance by the company in April-June: IndianOil’s re processed',’’ tonnes of crude oil and pipelines throughout stood at 16.10 million tonnes.