Indian Oil Corp’s Q1 consolidated net profit falls 35%

Indian Oil Corp (IOC) on Friday reported a 35.14 per cent fall in its consolidated net profit for the April-June quarter at Rs 2,350.25 crore.

During the corresponding period of last fiscal, the company had reported a consolidated net profit of Rs 3,623.69 crore.

Total income of the company plunged 40 per cent to Rs 90,776.10 crore during the quarter under review.

In a regulatory filing, IOC said that its revenue and other consequential expenses during the period decreased due to nationwide lockdown for Covid-19.

Its sales during April were impacted significantly by the nationwide lockdown and consequently capacity utilisation of the plants was lower. However, the same has come back close to normal levels by June, the company said.

“As regards, the recoverability of assets and financial resources, performance of contractual liability and obligations, ability to service the debt and liabilities, the holding company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations,” it said.

The holding company is positive on the long-term business outlook as well as its financial position, the filing said, adding that the company is closely monitoring any material changes to future economic conditions.