The board of Indian Oil Corporation (IOCL) approved implementation of petrochemical and lube integration project at the company's Gujarat refinery at an estimated cost of Rs 17,825 crore.
IOCL said the project will not only increase the capacity of Gujarat refinery from 13.7 MMTPA to 18 MMTPA, but would also result in integration to petrochemicals with production of 500 KTPA Polypropylene.In addition, production of Lube Oil Base Stock (LOBS) of 235 KTA is also proposed. The project would be a building block for production of niche chemicals in future with a potential to increase petrochemical and speciality products integration index on incremental crude oil throughput which would enhance the corporate margins of IOCL. The announcement was made at the fag end of market hours yesterday, 22 September 2020.
IOCL reported a 35.1% drop in consolidated net profit to Rs 2,350.25 crore in Q1 June 2020 from Rs 3623.69 crore in Q1 June 2019. Consolidated net sales tumbled 53.9% to Rs 60,528.68 crore in Q1 June 2020 over Q1 June 2019.
IOCL's segments include sale of petroleum products, sale of petrochemicals and other businesses. As of 30 June 2020, the Government of India held a 51.50% stake in IOCL while ONGC held a 14.20% stake in the company.
Shares of Indian Oil Corporation fell 0.53% to Rs 75.75. The stock has gained 6.46% from its 52-week low of Rs 71.15 hit on 18 May 2020.
On the technical front, the stock's RSI (relative strength index) stood at 24.574. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading below its 50-day moving average (DMA) placed at 86.24 and its 200-day moving average (DMA) placed at 95.43.
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