Indian Oil’s Net Profit Increased Almost Three Times! Sales Raised Around 37%

The unlock has resulted in the rise of demand for petroleum. After the nationwide lockdown, Indian Oil Corp. Ltd.’s quarterly profit increased to almost three times as the demand for auto fuel improved due to the current conditions.

The recent analysis states that the net profit of the state-run oil marketer reached Rs 6,227 crore in the quarter ended September from Rs 1,910 crore in these three months. On an average, it is estimated that the revenue rose 37% quarter-on-quarter to Rs 85,611 crore.

Indian Oil’s revenue was sustained by recovering consumption. Petrol consumption increased around 3.3% over the year in September. Diesel’s demand still fell 6% year-on-year but that was less than a 20.7% drop in August. However, diesel consumption is expected to revive again as economic activity further picks up, and people will preferably opt for personal transport over public transport keeping the fears of contracting the virus.

This rise has definitely balanced the revenue drop that came during the lockdown. Indian Oil’s Bharat Petroleum Corp. Ltd also reported a rise in profit and gross refining margin in the reported quarter. The price of Brent crude averaged at $43.1 a barrel during the quarter compared with $34 in the preceding three months.

In the coming times, it is expected that the rise will increase more benefiting the oil and refinery industry.

All the industries during the lockdown phase have been affected immensely however, the petroleum industry has survived the best amidst the lockdown due to the high demand for personal mobility. Not only that people need to resume their work back again that is also one of the major reasons for the increase in demand.

Reports had even confirmed that this rise will be quite stable keeping the current scenario in mind.

Indian oil has estimated its demand in the coming years and is all set to balance its loss with the rising demand in the market.

For further updates stay tuned with us.