Indian Oil Corporation Ltd.'s net profit fell by half in July to September quarter on currency and oil headwinds, accompanied by a one-time employee benefit cost.
Net profit fell 52 percent quarter-on-quarter to Rs 3,250 crore, according to the state-run firm's exchange filing. That's much lower than the Rs 5,120-crore consensus estimate of analysts tracked by Bloomberg.
This was despite a higher-than-expected revenue and a 78 percent rise in other income to Rs 1,041 crore. The gain was offset by factors such as rising employee cost, depreciation of the rupee and a fall in inventory gains triggered by rising crude prices.
- Employee cost jumped 56 percent to Rs 3,706 crore, due to one-time contribution for superannuation benefits.
- The rupee depreciated 5.87 percent in the period.
- Brent crude averaged $75.89 per barrel in the quarter, a 1 percent increase compared with the previous quarter.
- Inventory gains fell 44 percent quarter-on-quarter to Rs 4,408 crore.
Net revenue rose 1.98 percent to Rs 1.52 lakh crore, beating the Rs 1.36 lakh crore estimate
Other Highlights
- Earnings before interest, tax, depreciation and amortisation dropped 46.23 percent to Rs 6,762 crore, compared with the Rs 9,495-crore estimate.
- Ebitda margin contracted to 5.12 percent from 9.71 percent. Analysts had expected margin to come in at 7 percent.
- Crude throughput rose 21 percent to 21.37 million metric tonnes.
- Sales volume fell 8 percent to 19.82 million metric tonnes.
- Gross refining margin, or the company's earning per barrel of oil, fell to $6.79 per barrel from $10.21 per barrel.
Shares of Indian Oil Corporation rose as much as 6.7 percent to Rs 151.4, before paring some of its gains. The stock has declined 24 percent over the last 12 months compared with a 5.5 percent gain in the benchmark S&P BSE Sensex Index.
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