Why This Large Cap Stock Is Plunging Despite Swinging To Q1 Profit

Shares of Indian Oil Corp slumped on Friday even though the state-owned oil refiner swung to a profit in the first quarter.

What Happened? Indian Oil’s net profit came in at ₹13,750 crore for the quarter ended June, a massive improvement over a loss of ₹1,993 crore a year earlier.

The bump in profit was mostly due to higher fuel sales and fatter marketing margins as expenses dropped significantly.

The company earned ₹9.98 per share during the quarter versus a loss of ₹1.45 per share a year ago.

However, the oil refiner’s revenue took a hit in the first quarter, standing at ₹2.21 lakh crore compared with the ₹2.52 lakh crore it made last year.

Price Action: Indian Oil’s share price was languishing deep in the red in late afternoon trade on Friday, down 3.30% at ₹95.35.

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Posted In: EarningsNewsIndian Oil Corporation