India’s largest public-sector refiner, Indian Oil Corporation (IOC), reported an 82.7 percent fall in its net profit for the second quarter period of the financial year 2019-20 on the back of slump in refinery margins and inventory losses.
The company posted a standalone net profit of Rs 563.42 crore in the July-September quarter of FY20 as against net profit of Rs 3,246.93 crore in the same period of the previous year.
“The major reason for the decline in net profit was inventory loss in Q2 as against inventory gains in the same period of previous year,” IOC Chairman Sanjiv Singh said.
He added that the company recorded an inventory loss of Rs 1,807 crore in the second quarter period as opposed to inventory gain of Rs 2,895 crore in the same period of FY 19.
The company’s refinery margins also fell to $1.28 in Q2 as against refinery margin of $6.79 in the year ago period.
Shares of IOC ended 0.30 points or 0.20 per cent lower at Rs 146.80 on the BSE.