Indian Oil reports drop in net profit in Q1 FY2018

Indian Oil Corporation (IOC), the country’s leading oil marketing company, after witnessing its highest ever profit of Rs 19,106 crore for FY2016-17, has seen a steep drop of 45 percent in net profit for for the first quarter of FY2017-18.

The company has reported a net profit of Rs 4,548 crore in the April-June 2017 period as against Rs 8,268 crore for the same period last year.

As per the financial results announced by the company to the National Stock Exchange (NSE) today, total revenue for Q1 FY2017-18 stood at Rs 122,630 crore, an increase of 28.23 percent compared to the same period last year (Q1 FY2016-17: Rs 95,632 crore).

The change in the profitability, as per the company’s balance sheet, can be attributed towards expenditure on increase of inventory with a total of Rs 6,719 crore as against negative Rs 5,256 crore in Q1 FY 2016-17.