Indian Oil (IOC) Q4 67/68 earnings summary

Executive summary

• Turnover rose 27.3% YoY to Rs. 430.68 crore; profit before development rebate reached Rs. 10.83 crore, with Rs. 7.83 crore remaining after the Rs. 3 crore provision.

• Petroleum product sales increased 32% to 6.46 million kilolitres, lifting market participation from 34.2% to 40.3%.

Financial highlights

• Turnover was Rs. 430.68 crore versus Rs. 338.35 crore in 1966-67; profit before development rebate was Rs. 10.83 crore versus Rs. 6.26 crore.

• Net profit after the Rs. 3 crore development rebate provision was Rs. 7.83 crore; recommended dividend was 7% on paid-up shares, with Rs. 3 crore transferred to general reserves.

• Depreciation and interest provisions rose to Rs. 5.79 crore and Rs. 5.71 crore, respectively, from Rs. 5.02 crore and Rs. 4.93 crore in 1966-67.

• Reported profit was tax-free for the year due to development rebate eligibility; depreciation for financial reporting used the straight-line method, versus written-down value for tax.

Outlook and guidance

• Sales were projected at 8.5 million kilolitres for the current year and over 20 million kilolitres by FY 1973-74, reflecting anticipated demand and higher refining capacity.

• Aviation fuel sales were expected to reach 400,000 kilolitres in the current year; exports were projected at 460,000 tonnes valued at about Rs. 7 crore in 1968-69.

• Indane expansion into new markets was planned after LPG cylinder supply constraints eased; the outlook for domestic LPG sales was described as bright.

• Gauhati's 2,500-tonne/year LPG plant was expected ready in Q1 1969; Barauni's third million-tonne unit was expected to be tested before end-1968.