Indian Oil Corporation’s net profit trebled in the December quarter to Rs 2,339.02 crore as inventory gain offset lower refinery margins and forex losses.
The standalone net profit in the October-December period at Rs 2,339.02 crore was higher than Rs 716.82 crore in the same period a year ago, IOC chairman Sanjiv Singh said.
“The variation is majorly on account of inventory gain during the current quarter against inventory loss in the corresponding quarter of the previous financial year, partly offset by lower refining margins and exchange losses in the current quarter,” he said.
The company had an inventory gain of Rs 1,608 crore in the three-month period compared with an inventory loss of Rs 8,523 crore in the third quarter of 2018-19. The company’s net refinery margin stood at $2.15 per barrel in the third quarter compared with $5.12 a year ago.
Inventory gain arises when a company buys raw material (crude oil in case of IOC) at a particular price, but by the time it is shipped to India and processed, international prices would have moved up.
