Indian Oil (IOC) Q4 64/65 earnings summary

Executive summary

• Amalgamation of the refining and marketing businesses took effect 1 Sep 1964; results cover the combined organization for FY1964-65.

• FY1964-65 net profit was Rs 75.64 lakh on turnover of Rs 77,81,94,904; freight and sales-tax under-recoveries materially reduced reported returns.

Financial highlights

• Profit before depreciation and interest was Rs 5,54,78,102; depreciation was Rs 1,32,88,921 and interest charges Rs 3,46,25,090.

• Net profit was Rs 75.64 lakh, equal to 1.71% of paid-up capital of Rs 44.26 crore. Excluding Rs 104.12 lakh of freight and sales-tax under-recoveries, profit would have been Rs 179.76 lakh and return 4.06%.

• Sales were Rs 77,81,94,904; net transfers under product exchange were Rs 21,44 lakh and other income Rs 35 lakh.

Outlook and guidance

• Gauhati Refinery planned to sustain throughput above its 0.75 million-tonne annual design capacity, subject to safe operating conditions.

• Barauni’s second stage was expected to be completed by Oct 1965, with commissioning potentially delayed; its third-stage lube units were expected in Q1 1966.

• Gujarat’s first stage was to begin gradual commissioning after pre-commissioning tests starting Aug 1965; its second and third million-tonne capacities were expected in Q1 and H2 1966.

• Barauni expansion to 3 million tonnes per year was scheduled to materialise in H2 1966.