Indian Oil's Q3FY18 net profit at Rs 7,883 crore, to issue 1:1 bonus share

State-owned Indian Oil Corp (IOC) surpasses analysts' estimates with flying colors, in both top-line and bottom-line financial performance for December 2017 quarter (Q3FY18).

IOC recorded net profit of Rs 7,883.22 crore in Q3FY17, witnessing a whopping 97.33% growth compared to Rs 3,994.91 crore in the corresponding period of previous year.

Q3FY18 net profit was also positive, as the company clocked a massive 113.27% rise if compared with net profit of Rs 3,696.29 crore in preceding quarter.

Revenue from operations came in at Rs 130,865.11 crore this quarter, registering increase of 13.17% from Rs 115,630.07 crore in Q3FY17 and 18.28% from Rs 110,637.07 crore in Q2FY18.

Under revenue, IOC mentioned that as the Goods and Services Tax (GST) been implemented since July 2017, wherein some of the petroleum product are still outside it’s ambit.

A Bloomberg poll of experts projected IOC’s revenue and net profit for Q3FY18 at Rs 1.12 lakh crore and Rs 4,750 crore respectively.

Accordingly, GST is being levied on some products as against excise duty applicable hitherto. Since excise duty is included in revenue and GST is not included in revenue, thus to ensure comparability, revenue excluding excise duty on applicable product is mentioned in Q3FY18 quarter.

IOC’s excise duty stood at Rs 20,198.18 crore in Q3FY18, which was down by 10.34% from Rs 22,528.22 crore in Q3FY17, but was gradually up by 0.64% from Rs 20,070 crore in Q2FY18.

On segment-wise revenue break up in Q3FY18, petroleum products stole the limelight by contributing 14.19% growth to Rs 126,978.41 crore from Rs 111,197.66 crore in Q3FY17.

However, revenue from petrochemical was mostly muted, as it dropped by 0.19% year-on-year (YoY) to Rs 4,705.15 crore in Q3FY18, while other business activities of IOC saw 10.78% yoy decline to Rs 2,627.95 crore this quarter.

For the nine months period of FY18 (9MFY18), IOC’s net profit stands at Rs 16,128.02 crore up by 4.82% year-on-year (YoY), while revenue at Rs 369,692.68 crore growing by 14.42% on yearly basis.

Average gross refining margin for April - December 2017 period was at $8.28 per barrel - higher from $7.36 per barrel a year ago same period.

IOC has accounted for budgetary support of Rs 2,249.92 crore from April - December 2017 - lower from Rs 3,879.73 crore in the same period of previous fiscal, as revenue grants on sale of SKO and included in revenue from operations and no under-realization is suffered by the company on this account.

Apart from this, in it’s board meeting held on Tuesday, IOC declared an interim dividend of Rs 19 per share of Rs 10 each - which would be 190% on the paid up equity share capital for FY18.

Interim dividend will be paid to shareholders before February 28, 2018.

Furthermore, IOC also informed that the board has recommended issue of bonus share in the ratio of 1:1 - which means 1 new equity bonus share of Rs 10 each for every 1 one existing share of Rs 10 each fully paid up subject to the approval of the shareholders.