New Delhi : Indian Oil Corporation, the nation’s largest company in terms of turnover, returned to black in the December quarter on the back of a robust refining margin, improvement in performance and lower finance costs.
Net profit in October-December of this fiscal came in at Rs 3,056.86 crore against a net loss of Rs 2,636.80 crore, IOC Chairman B Ashok said.
“The profit is mainly because of lower inventory losses, besides performance improvement,” he said.
The company’s inventory loss came down to Rs 4,477 crore in October-December 2015, from Rs 12,840 crore in the previous fiscal. Inventory losses arise when the company buys oil at a price, but by the time it ships crude to India and processes the same into fuel, the rates would have fallen, lowering the value of the inventory.
Ashok said the company earned $5.96 on turning every barrel of crude oil into fuel compared with a negative gross refining margin (GRM) of $7.73.
MRPL posts net profit
Mangalore Refinery and Petrochemicals Ltd (MRPL) returned to black with a net profit of Rs 298 crore in the December quarter on the back of robust refining margins. MRPL, a subsidiary of ONGC, earned USD 8.4 on turning every barrel of crude oil into fuel in third quarter of current fiscal as compared to USD 6.74 a barrel gross refining margin in the year-ago period.
