IOCL saw revenue from operations rise 46.66 per cent to ₹1,69,770.77 crore during the quarter under review, compared to ₹1,15,753.88 crore in the same quarter last fiscal. Earnings per share grew to ₹6.93 a share in September quarter this year from ₹6.78 per share a year ago.

The state-run refiner posted an unexpected profit as expanding margins on fuels and stockpile gains offset the jump in costs. However, better operational performance was marred by lower inventory gains, leading to only marginal growth in quarterly profit.

Also Read: Indian refiners willing to join forces for cheaper oil imports

A company accrues inventory gains when it buys raw material – crude oil in Indian Oil’s case – at a particular price but rates go up by the time it processes it into finished products. Since retail rates are benchmarked at prevailing international prices, an inventory gain is booked.

Higher expenses exacerbated lower inventory gains in Q2 FY22 as they grew to ₹1,62,834.14 crore from ₹1,08,946.60 crore in Q2 FY21. 

Average Gross Refining Margin (GRM) for the September quarter 2021 is $6.57 per barrel, compared to $3.46 per barrel in the year-ago period. The core GRM or the current price GRM for the period three months to September 2021, after offsetting  inventory loss/gain, comes to $3.47 per barrel, IOCL said.

Also Read: Oil is on the boil but OMC margins are holding firm

“Due to outbreak of Covid-19 pandemic and consequent national lockdown, the operations of the company during April- September 2020 were considerably affected. However, since then, the impact has significantly reduced as is evident from the physical performance during April-September 2021,” the company further said.

The IOCL board also approved an interim dividend of ₹5 per equity share, or 50 per cent, for the financial year 2021-22.