Indian Oil Corporation Ltd. (IOCL), one of India’s largest petrochemicals manufacturer announced its results for the third quarter ended December 31, 2020.
Petrochemicals Segment Q3 Results- QoQ
The segment’s profit before taxes (PBT) grew 75.74% to Rs 1,720.96 crores ($235.9 million) for the period ended December 31, 2020 as against PBT of Rs 979.26 crores ($134.2 million) for the previous quarter.
Net sales increased 24.19% to Rs 5,514.17 crores ($755.7 million) for the period ended December 31, 2020 as compared to Rs 4,440.03 crores ($608.5 million) during the previous quarter.
Petrochemicals Segment Q3 Results- YoY
The segment’s PBT grew 235.16% to Rs 1,720.96 crores ($235.9 million) for the period ended December 31, 2020 as against PBT of Rs 513.47 crores ($70.4 million) for the prior-year quarter.
Net sales increased 32.80% to Rs 5,514.17 crores ($755.7 million) for the period ended December 31, 2020 as compared to Rs 4,152 crores ($569 million) during the prior-year quarter.
IOCL sold 23 million tonne (MT) of petroleum products in the quarter, marking an annual drop of 1.6%. “Moving forward, oil demand is expected to rise and be above pre-covid levels in the quarter Jan-Mar 21 and in the next fiscal I expect oil demand to cross FY20 levels,” IOCL chairman, SM Vaidya, said
New Refinery
IOCL said that the company’s board has approved implementation of 9 MMTPA refinery at Cauvery Basin, Nagapattinam in Tamil Nadu by IOCL’s subsidiary company, Chennai Petroleum Corporation Limited (CPCL) at an estimated cost of Rs. 29,361 crore ($4.02 billion), to meet the demand of petroleum products in southern India.
The project will be built jointly with IOCL subsidiary Chennai Petroleum Corporation (CPCL), with both the entities investing in 25% stake each in the upcoming refinery. The company is looking for a strategic partner to invest in the remaining stake.
Naftiran Intertrade, an affiliate of the National Iranian Oil Company, owns 15% stake in CPCL.