Indian Oil (IOC) Q4 65/66 earnings summary

Executive summary

• FY1965-66 turnover rose to Rs 1,70,20,81,917 from Rs 77,81,94,904; net profit after tax reached Rs 1,01,26,380 from Rs 75,64,091.

• Refinery capacity, pipeline links and marketing reach expanded, while devaluation losses and freight and sales-tax under-recoveries weighed on profits.

Financial highlights

• Net profit after tax was Rs 1,01,26,380 vs Rs 75,64,091; Rs 59,19,366 was applied against the prior-year debit balance, leaving Rs 42,07,014 to carry forward.

• Devaluation loss of Rs 4,37,14,873 was charged; freight and central sales-tax under-recoveries cost Rs 161.33 lakh vs Rs 104.17 lakh in 1964-65.

• Depreciation and interest charges were Rs 3,33,26,901 and Rs 3,50,76,438, respectively, vs Rs 1,32,88,921 and Rs 3,46,25,090 in 1964-65.

• Marketing Division sales were 3.65 million kl vs 1.71 million kl in 1964-65; corrected Division profit after tax was Rs 88.70 lakh, not Rs 77.70 lakh.

Outlook and guidance

• Barauni was expected to reach its designed 2 million-tonne annual capacity in December 1966; Lube Oil production was expected before year-end after the Dewaxing Unit completion.

• The Barauni-Haldia line was expected to be ready for commissioning early in 1967; the Cochin-Coimbatore pipeline survey and design work was nearing completion.

• INDANE was planned for domestic rollout in other Northern and Western Indian towns and for industrial use; wider availability depended on LPG production from new public-sector refineries.