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Indian Oil's March-quarter profit beats estimates on inventory gains

Indian Oil's March-quarter profit beats estimates on inventory gains

FILE PHOTO: A woman walks past a logo of Indian Oil outside a fuel station in New Delhi, India, August 29, 2016. REUTERS/Adnan Abidi

BENGALURU: Indian Oil Corp Ltd on Wednesday reported a fourth-quarter profit that beat analysts' estimates by a huge margin as higher crude prices boosted the inventory value of the country's biggest refiner.

The state-owned company reported a net profit of 87.81 billion Indian rupees (US$1.20 billion) for the quarter ended March 31, compared with a loss of 51.85 billion rupees a year ago.

Analysts were expecting the refiner to log a profit of 55.06 billion rupees, according to Refinitiv IBES data.

Inventory gains are booked when oil prices rise by the time a company processes oil into fuel. Brent crude prices jumped about 23per cent during the March quarter.

Revenue rose 18per cent to 1.64 trillion rupees.

IOC's April-to-March 2021 average gross refining margin - the difference between the cost of crude oil processed and the selling price of refined products - jumped to US$5.64 per barrel against US$0.08 a barrel a year ago.

The company, along with subsidiary Chennai Petroleum, controls about a third of India's 5 million-barrels-per-day (bpd) refining capacity.

(US$1 = 73.1400 Indian rupees)

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Devika Syamnath)

Source: Reuters

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