Q2 FY2021 Results: IOC records profit at Rs 6,164 crore, 1566% growth YoY

The company reported a net profit of Rs 6,164.70 crore for the September quarter, a 1566% growth YoY. It had posted a profit of Rs 370.44 crore in the corresponding quarter previous year.

Indian Oil Corporation Ltd. (OIL) on Friday announced its Q2 FY2021 results. The company reported a net profit of Rs 6,164.70 crore for the September quarter, a 1566% growth YoY. It had posted a profit of Rs 370.44 crore in the corresponding quarter previous year.

The oil refinery posted a total income of Rs 117,871.16 crore during the Q2 FY2021 period as compared to Rs 135,219.28 crore during the FY2020 period. In the previous quarter, it posted Rs 90,776.10 crore revenue.

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The Mumbai based company has reported diluted Earnings per Share (EPS) of Rs 6.56 for the period. It had posted EPS of Rs 2.43 for the previous Q1 June period.

The Maharatna in its BSE regulatory filing stated, “The holding company is consistently valuing inventories at Cost or Net Realisable Value (NRV), whichever is lower and NRV is derived based on actual realisation in specified subsequent period. The Exceptional Item in the Financial result for year ended 31.03.2020 is towards write down in valuation of the inventories below cost, amounting to Rs 11,304.64 crore, which is on account of consideration of a longer period for estimation of NRV due to unprecedented situation of the lockdown in March 2020 and resultant significant decline in demand.”

“It is further notified that the Board of Directors have also approved the proposal for delegation of authority for borrowings including borrowings upto Rs. 20,000 crore during a financial year through private placement of bonds/ debentures in one or more tranches, from time to time, within the overall limit of Rs. 1,65,000 crore approved by
shareholders at the last Annual General Meeting.”