IndianOil profit up at Rs 6,110 crore in Q1 due to inventory gains

Consolidated total income stood at Rs 1.57 lakh crore from Rs 90,775 crore in the same period. The higher profit was mainly on account of inventory gains and better petrochemical margins during the current period," the company statement said in a statement.

IOC's gross refining margin (GRM) stood at 6.58 dollars per barrel in Q1 FY22 as compared with negative 1.98 dollars a barrel in Q1 FY21, said Chairman Santosh Vaidya.

"The core GRM for a current period after offsetting inventory loss/gain comes to 2.24 dollars per barrel," he said.

Vaidya said he expects fuel demand recovery to reach pre-Covid-19 levels by Diwali (early November).

"Petrol demand has crossed the pre-pandemic levels. We are currently three to five per cent more than pre-Covid levels. Diesel demand is 88 to 90 per cent and I expect to get it back to pre-Covid levels by Diwali. We may have to wait till the end of the current financial year to get aviation turbine fuel (ATF) to come back to its normal."

This is because of preference for personal mobility, said Vaidya. The demand for diesel has remained subdued as public transport remains restricted in certain parts of the country.

Shares of IndianOil closed 0.67 per cent lower on the BSE at Rs 103.20 a unit.

IndianOil is a diversified integrated energy major with a presence in almost all the streams of oil, gas, petrochemicals and alternative energy sources. It accounts for nearly half of India's petroleum products market share.