Indian Oil Corporation Ltd.'s profit for the quarter ended March beat estimates, rising nearly eightfold over the last quarter on higher other income.
Net profit stood at Rs 6,099 crore in the January-March period compared with Rs 717 crore reported in the previous quarter, the state-run oil marketer said in an exchange filing. That compares with Rs 5,303-crore profit estimate of analysts tracked by Bloomberg.
Revenue declined 9.8 percent quarter-on-quarter to Rs 1,26,214 crore, in line with the Rs 1,28,667-crore estimate.
Nearly 30 percent rally in crude oil prices in the March-ended quarter likely boosted crude inventory gains and drove up refining profit, according to a Bloomberg Intelligence report released prior to the earnings announcement. The Brent crude prices averaged around $63 per barrel during the quarter.
Earnings before interest, tax, depreciation and amortisation more than doubled to Rs 10,876 crore. Operating margin expanded 600 basis points to 8.62 percent.
Key Highlights (QoQ):
- Other income more than doubled to Rs 1,059.5 crore.
- Debt rose 50 percent to Rs 83,260 crore.
- Sales volume rose 0.6 percent to 21.67 million metric tonnes.
- The company declared a final dividend of Re 1 per share.
Shares of Indian Oil pared losses and closed 1 percent lower compared with a 1.33 percent gain in the Nifty.
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