Indian Oil posted a nearly threefold surge in second quarter net profit at ₹21,630 crore, spurred by higher pump prices and government compensation for subsidised LPG sales.The company had recorded a profit of ₹7,610 crore in the year-ago quarter though it slipped to a loss of ₹2,661 crore in the June quarter this fiscal as the Iran war lifted global crude oil prices.Revenue from operations rose 29% to ₹2,62,935 crore in the three months ended September."The current quarter's profitability was largely driven by temporary decline in crude oil prices from mid-June to mid-August and robust margin from petrochemical and gas," Indian Oil said in a statement.Benchmark Brent crude averaged $96.3 per barrel during July to September, about 40% higher than a year earlier but about 7% lower than in April-June.
Pump prices, raised in the June quarter, remained unchanged in the September quarter despite a slight moderation in crude rates.Operating profit from the sale of petroleum products more than doubled to ₹24,935 crore from ₹11,268 crore. Operating profit from the gas business also rose sharply to ₹1,237 crore from ₹243 crore. Indian Oil also recognised ₹2,414 crore in government compensation during the quarter for LPG under-recoveries.Ahead of the earnings, Indian Oil shares closed nearly flat at ₹130 apiece on Friday.
