Indian Oil (IOC) Q4 62/63 earnings summary

Executive summary

• First profitable year: Rs. 59.61 lakh profit after tax provision; prior losses of Rs. 16.85 lakh wiped off, with a 18.4% return on invested capital.

• Rapid expansion lifted sales 204% and imports 134% YoY, alongside major growth in storage, depots and dispensing pumps.

Financial highlights

• Profit for FY1962-63 was Rs. 59,60,697.74 after provision for tax; Rs. 43.44 lakh proposed for Development Rebate and Rs. 31,708.37 of preliminary expenses written off.

• Sales totaled 6,42,448 kl; imports included 631,248 kl of bulk refined products and 7,572 kl of axle and lubricating oils, plus greases.

• Profit was reduced by Rs. 4.26 lakh Central Sales Tax payable by other oil companies, Rs. 3.14 lakh unrecovered freight, Rs. 8.08 lakh bridging expenses and Rs. 1,08,711 emergency insurance.

Outlook and guidance

• LPG project plans included bottling plants at Delhi, Calcutta and Kanpur in addition to Barauni; construction was expected to start in December 1963 and marketing supply in 1964.

• Construction of bulk petroleum installations for the Indian Air Force was underway at multiple locations; progress was described as satisfactory despite material shortages.