Indian Oil (IOC) Q4 68/69 earnings summary

Executive summary

• FY1968-69 turnover reached Rs. 526.16 crore, up 22.17% YoY; profit before transfer to Development Rebate Reserve rose to Rs. 18.46 crore from Rs. 10.83 crore.

• Sales reached 8.11 million kl and market participation rose to 44.3% from 40.3%; refining, pipeline and distribution capacity expanded.

Financial highlights

• Turnover was Rs. 526.16 crore versus Rs. 430.68 crore in FY1967-68; profit before Development Rebate Reserve was Rs. 18.46 crore versus Rs. 10.83 crore.

• After a Rs. 12 crore Development Rebate Reserve provision, net profit was Rs. 6.46 crore; proposed dividend was 7% (Rs. 70 per share), with Rs. 1.50 crore transferred to General Reserve.

• Depreciation was Rs. 7.85 crore and interest Rs. 6.10 crore; revised depreciation rates increased the charge by Rs. 56.19 lakh.

• Imports of POL products were Rs. 22.40 crore versus Rs. 25.10 crore; rupee-source purchases saved ~Rs. 14 crore in free foreign exchange.

Outlook and guidance

• FY1969-70 domestic sales target set at 10.20 million kl, subject to product availability and demand.

• FY1969-70 product exports forecast at 540,000 tonnes, with expected foreign-exchange earnings of ~Rs. 7 crore.

• Gauhati LPG production was expected to start in Q1 1970; refinery expansion from 0.75 million to 1.10 million tonnes annually was sanctioned.

• Barauni refinery storage and handling works were underway for 2.4 million tonnes per year; coke calcination plant was expected ready by mid-1970.