Indian Oil Corporation, the country's top refiner reported a net profit of Rs 1,911 crore in the first quarter (April-June), a decline of 46.85 per cent from the same period last year, when the company posted a profit of Rs 3,596 crore. Revenue from operations fell to Rs 88,937 crore during the quarter, as compared to Rs 1.5 lakh crore, a year ago, as the coronavirus-induced lockdown led to poor fuel demand.
The impact of lockdown could be felt in Indian Oil's margins too. The company recorded gross refining margin - profit from converting a barrel of oil into refined products - of minus $1.98 per barrel in the three months leading to June, compared with $4.69 per barrel a year ago.
On a sequential (quarter-to-quarter) basis however, Indian Oil staged a turnaround as the refiner witnessed a net loss of Rs 5,185.30 crore in the January-March quarter of last financial year.
The oil company's stock declined sharply following the results. At 2:50 pm, the IOC stock was down 1.13 per cent, the shares priced at Rs 87.55 apiece.