IndianOil Q1 net profit surges 50%
New Delhi   14-Aug-2018

IndianOil reported a 50% jump in its April-June quarter net profit as inventory gains negated lower refining margins. Consolidated net profit at Rs 6,831 crore in the first quarter of the current 2018-19 compared with Rs 4,549 crore net in the same period of the previous financial year, the company said in a statement here.

“The variation is majorly on account of higher inventory gains of Rs 7,866 crore during the current quarter, which is partly compensated by lower refining margins and exchange losses,” it said.

Inventory gains result when a company buys crude oilat a particular price but by the time it is able to transport it to its refinery and turn it into fuel, international rates have moved up.