Indian Oil Q4 net profit jumps 85% on ease of import policy
Revenue from operations jumped 24% to Rs 1.22 lakh crore.business Updated: May 26, 2017 12:24 IST
Indian Oil Corp reported a net profit growth of 85% in the fourth quarter of 2016-17, amid intense competition from private players due to the deregulation of fuel pricing, chairman B Ashok said on on Thursday. The PSU said it saved Rs 1000 crore after the government allowed them freedom to formulate their own crude import rules.
India’s top refiner said profit came in at Rs 3,721 crore rupees ($576.45 million) in the quarter ended March 31, compared with Rs 2,006 crore a year earlier.
Revenue from operations jumped 24% to Rs 1.22 lakh crore.
“Deregulation has been intense especially the past one year. But despite competition from private sector we have improved our performance. Out PAT has increased from Rs 11,242 crore to Rs 19106 crore, an increase of Rs 7,864 crore,” Ashok said at a media conference.
“We have added 1.5 crore LPG connections, which is the highest ever,” he said.
IOC is now looking to focus on overseas expansion to shore up revenues. “Deeper south east Asia is our new focus along with the existing interests in other geographies,” Ashok said.
The company has also launched a startup programme with a fund of Rs 30 crore. “Business process improvement and technology innovations are the two areas where we will incubate startups,” Ashok said.
We have been looking at what are the possibilities when it comes to creating a mega oil companies. IOC is not new to mergers and acquisitions. There are possibilities of merging companies within our umbrella. Too early for me to share details on the creation of a mega oil company.
Analysts on average expected March-quarter net profit of Rs 3,795 crore, Thomson Reuters data showed.
Average gross refining margins improved to $7.77 per barrel in the financial year ended March, compared with $5.06 per barrel in the 2015-16 period.
IOC shares were up as much as 3% after the results in a firm Mumbai market whose benchmark Sensex closed 1.5% higher.