Indian Oil (IOC) Q4 61/62 earnings summary

Executive summary

• FY ended 31 Mar 1962 saw rapid expansion in imports, sales and distribution infrastructure, but ended with a net loss of Rs. 13.96 lakh.

• First-phase sales and import targets were nearly achieved; storage and depot buildout lagged due to land and steel constraints.

Financial highlights

• Oil sales were Rs. 5.83 crore; net loss was Rs. 13.96 lakh for FY 1961-62.

• Customs and excise duties that could not be passed through to selling prices cost Rs. 11.14 lakh; unrecovered freight added Rs. 1.01 lakh.

• Imports rose to 272,800 kl from 41,300 kl and sales to 210,414 kl from 32,073 kl; both volumes increased about sevenfold, as reported.

Outlook and guidance

• Negotiations for premium-grade lubricating oil imports and a lubricating oil blending plant were in progress, with finalisation expected shortly.

• Project work with ENI covered LPG bottling and distribution facilities and distribution equipment; the LPG project report was under examination and the equipment list was being finalised.

• First-phase targets called for 1,35,000 tons of main-port storage and 50 depots; actual year-end capacity was 1,11,000 tons, with sales through 23 depots.