Lanka IOC 1Q profits surge to Rs.1.35bn

14 August 2013 08:48 am - 1 - {{hitsCtrl.values.hits}}

A A A

Lanka IOC PLC (LIOC), the local unit of the Fortune 500, Indian Oil Corporation Limited saw its net profits for the three months ended June 30,2013 soaring as much as 600 percent Year-on-Year (YoY) to Rs.1.35 billion due to cost controls.

The company achieved this excellent profit despite the revenue remaining almost flat at Rs.18.47 billion from the corresponding period last year. The Earnings per Share rose to 253 cents from 36 cents.

Both direct costs and overheads declined during the quarter, demonstrating the concerted effort by the company to keep costs under control.

The cost of sales declined by as much as 8 percent YoY to Rs. 16 billion improving the gross profit margin to 13 percent by end June from 6.8 percent.

Both distribution and administration costs declined by 10 percent YoY to Rs.608.2 million.

The cost to revenue ratio improved to 3.3 percent from 3.6 percent from a year ago, demonstrating an increase in cost efficiency.

The narrowing of the costs resulted in an operating profit of Rs.1.8 billion, an increase of 200 percent from a year ago. The operating margin improved from 3.2 percent to 9.7 percent.

Meanwhile the company received an additional finance income of Rs. 11.5 million during the quarter over the same period last year.

Finance cost decreased 43 percent YoY to Rs. 251.6 million, increasing the interest cover to 7 times from 1.4 times.

The well-experienced downstream petroleum products operator recently aggressively penetrated into the Sri Lankan lubricant market through the ‘Servo’ brand. The company expects to carry out total blending of lubricant products in their blending plant in Trincomalee.

“Based on the vast gap between the first and the second player, I see a huge potential in capturing the market share,” LIOC Managing Director, Subodh Dakwale told Mirror Business in a recent interview..

LIOC’s Servo has 11.2 percent market share next to Chevron which has a share of 57 percent.

LIOC holds one third stake in Ceylon Petroleum Storage Terminals Ltd, the common user facility in Sri Lanka for storage and distribution of petroleum products. (DK)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 1

pissu double Saturday, 17 August 2013 12:57 PM

Petroleum Corporation sells their products at the same rates, but they are in the RED. How come ?

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Lanka IOC 1Q profits surge to Rs.1.35bn

Comments - 1

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Racing event tragedy leaves seven dead including eight-year-old child

Street food vendor arrested for verbally harassing foreigner

Former MP Palitha Thewarapperuma dies from electrocution

Sri Lankan among NASA’s new crew for next simulated Mars journey

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Two racing drivers arrested over Fox Hill tragedy

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

No footboard riding allowed, no liability for accidents: Railways Department

Six patients claim Rs.600 million from Keheliya and others for permanent loss of sight

SLPP, UNP initiates action for forming broad alliance

Here is the way!

Pakistan lose key players for last two T20Is against New Zealand

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident