IOC

Indian Oil Corporation (IOC) during Q4Fy17 incurred an employee costs of Rs.4202 crore, up from Rs.1812 crore (YoY); this is a huge 132% or three times jump. This was thanks to the revision in employee pay and allowances, starting 1st Jan’17, impacting to the tune of Rs.2093 crore.

This had a cascading effect on the bottomline. Revenue rose 6% (QoQ) at Rs.1,22,285 crore yet, it ended the quarter with a 7% drop in net profit at Rs.3720 crore. Yet, the market did not pay too much heed to the fall as the profits much higher than estimated.

EBITDA for the quarter was at Rs.6468 crore, down 18.5% and margins fell by a 158 bps to 5.28%.

Gross Refining Margin (GRM), which is the difference between the crude oil price and the total value of petroleum products produced came in much higher at $7.77/barrel v/s $5.06/barrel (YoY).