New Delhi, May 19
Indian Oil Corporation (IOC), the nation’s biggest oil firm, on Wednesday reported a better-than-expected net profit of Rs 8,781.30 crore in the March quarter, helped by a surge in refining margins as higher crude prices boosted the inventory value.
Standalone net profit in January-March was at Rs 8,781.30 crore, or Rs 9.56 a share, compared with a loss of Rs 5,185.32 crore in the same period a year ago, IOC chairman SM Vaidya said.
The rise in profitability was due to higher inventory gain and higher petrochemical margin in the fourth quarter of 2020-21 (April to March) fiscal, he said at a conference call with reporters. The company had reported a loss in January-March 2020 owing to inventory losses. Inventory gains are booked when crude prices rise by the time a company processes oil into fuel. Losses are booked when the reverse happens. — PTI