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IOCL declines as Q1 gross refining margin drops

The large-cap company has equity capital of Rs 2427.95 crore. Face value per share is Rs 10

Policy Pulse
Publish Date: Aug 30 2016 1:54PM | Updated Date: Aug 30 2016 1:54PM

IOCL declines as Q1 gross refining margin drops

Indian Oil Corporation Ltd (IOCL) fell 1.39% to Rs 565.80 on BSE after the company's average Gross Refining Margin (GRM) dropped to $9.98 per barrel in Q1 June 2016 from $10.77 per barrel in Q1 June 2015.


On BSE, so far 6.12 lakh shares were traded in the counter as against average daily volume of 2.97 lakh shares in the past one quarter. The stock hit a high of Rs 582.90 and a low of Rs 565.10 so far during the day. The stock had hit a record high of Rs 593.25 on 8 August 2016. The stock had hit a 52-week low of Rs 345.05 on 12 February 2016. The stock had outperformed the market over the past 30 days till 26 August 2016, rising 7.72% compared with Sensex's 1.51% fall. The scrip also outperformed the market in past one quarter, surging 38.58% as against Sensex's 4.23% rise.


Indian Oil Corporation (IOCL)'s net profit rose 25.46% to Rs 8268.98 crore on 5.72% fall in total income to Rs 107670.95 crore in Q1 June 2016 over Q1 June 2015. IOCL announced Q1 June 2016 results during market hours today, 29 August 2016.


IOCL accounted for budgetary support amounting to Rs 1331.69 crore from Government of India in Q1 June 2016 towards under recovery on sale of PDS kerosene (SKO), compared with Rs 1732.95 crore in Q1 June 2015. State-run oil marketing companies bear under-recoveries on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.


In Q1 June 2016, IOCL did not get any discount from ONGC/Oil India/Chennai Petroleum Corporation in respect of crude oil purchased from them compared with discount received of Rs 878.84 crore in Q1 June 2015.


Meanwhile, IOCL's board of directors recommended issue of bonus shares in ratio of 1:1 (one bonus share for each held).


IOCL is India's flagship national oil company, with business interests that straddle the entire hydrocarbon value chain - from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas as well as marketing of natural gas and petrochemicals. The Government of India held 58.28% stake in IOCL (as per the shareholding pattern as on 30 June 2016).