Indian Oil Corporation Limited (IOCL), the country’s largest petroleum company, decreased its net profit by 47 percent in the first quarter ended June. The refining margin of the company has come down due to the fuel demand affected due to Kovid-19 epidemic, due to which its profit has come down. In a communication sent to the stock exchanges, the company said that its single net profit during the quarter declined by 46.8 per cent to Rs 1,910.84 crore or Rs 2.08 per share. This resulted in a single net profit of Rs 3,596.11 crore or Rs 3.92 per share in the same quarter of the previous financial year. Most of the time in the first quarter, Corona was in lockdown due to the virus. During this time, the movement of vehicles was controlled. This resulted in IOC sales falling 29 per cent to 15.2 million tonnes during the quarter.
During the quarter, the company’s refineries processed 25 percent less i.e. 12.9 million tonnes of crude oil. The company said that it incurred a loss of $ 1.98 on every single barrel of crude oil processed during the quarter. The company said, “Business and economic activities were affected by the outbreak of the corona virus epidemic in the country. A lockdown was imposed on 25 March to curb the epidemic in India. This affected global demand for crude oil and disrupted the supply chain. During this period, companies had to cut their operations for a short period or shut down completely. ”
Operating income of the company declined to Rs 88,936.54 crore in the June quarter from Rs 1,50,136.70 crore in the same quarter of the previous financial year. The company said its sales were severely affected in April due to a nationwide shutdown. During this time the plants also operated at low capacity. However, by June it had come back to normalcy to a great extent.
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