IOC reports Q2 net profit of Rs 6,227 crore

Indian Oil Corporation Limited (IOC) on Friday reported a net profit of Rs 6,227.3 crore for the second quarter of 2020-21 compared to Rs 563 crore in the corresponding quarter of previous fiscal due to higher inventory gains. A company release said that Indian Oil reported revenue from operations of Rs 2,04,686 crore for the first half of the financial year 2020-21 as compared to Rs 2,82,514 crore in the corresponding period of the financial year 2019-20.

The net profit for the six months ended September 30, 2020, is higher at Rs 8,138 crores as compared to Rs 4,160 crores during the corresponding period mainly on account of higher inventory gain and exchange gains during the current period. The revenue from operations of Indian Oil was at Rs 1,51,749 crores in Q2 of the financial year as compared to Rs 1,32,377 crore in the corresponding quarter of the last fiscal.

"The net profit for the second quarter of FY 2020-21 is Rs 6,227 crore as compared to Rs 563 crores in the corresponding quarter of 2019-20 which is due to higher inventory gain and exchange gains during the current quarter against inventory losses in the corresponding quarter of last year," the release said. Indian Oil Chairman SM Vaidya said that the company sold 35.403 million tonnes of products, including exports, during the first six months of the financial year 2020-21.

"Our refining throughput for the first six months of FY 2020-21 was 26.899 million tonnes and the throughput of the Corporation's countrywide pipelines network was 32.364 million tonnes during the year. The gross refining margin (GRM) during the first half of the year 2020-21 was USD 3.46 per bbl as compared to USD 2.96 per bbl in the corresponding period of the previous financial year," Vaidya said. The release said that for the second quarter of FY 2020-21, IndianOil's product sales volumes, including exports, was 18.899 million tonnes.

"The refining throughput was 13.969 million tonnes and the throughput of the Corporation's countrywide pipelines network was 17.347 million tonnes during the same period," the release said. Another release said it has inked a Memorandum of Understanding (MoU) with the Indian Institute of Science, Bangalore (IISc) to develop and demonstrate biomass gasification-based hydrogen generation technology.

The process will help produce fuel cell grade hydrogen at an affordable price and accelerate IndianOil's journey towards a sustainable hydrogen economy. Welcoming the initiative, Vaidya said that this collaboration will be a step forward in the generation of green hydrogen and strengthen the promising foray made by IndianOil's research and development teams in the hydrogen economy landscape. Hydrogen will emerge as the ultimate solution for a sustainable energy future, he added.

The release said that IndianOil and IISc will jointly work for the optimization of both biomass gasification and hydrogen purification processes and the technology will be scaled-up and demonstrated at IndianOil's research and development centre at Faridabad. The Hydrogen generated from the plant will be used in fuel cell buses as part of the corporation's larger aspiration to usher in the hydrogen economy in the country. Hydrogen based fuel cell technology is a sustainable and ultimate green mobility solution for India. Fuel cell electric vehicles are powered by hydrogen and only emit pure water as tailpipe emissions. (ANI)

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