Indian Oil Corporation Ltd. (IOCL) has decided to invest in a new yarn manufacturing project in Bhadrak, Odisha. This is one of the first joint venture agreements between IOCL with MCPI Private Ltd in equity split 50:50.
Yarn project will cost approximately ₹4,382.21 crore. It will have a 900 TPD Continuous Polymerisation (CP) unit along with facilities to produce Draw Textured Yarn (DTY), Fully Drawn Yarn (FDY), polyester chips, and related equipment. IOCL will invest ₹657.33 crore in this joint venture. This will help the company prove its commitment to diversify and expand into new industries.
IOCL has reported a net profit of ₹180 crore in the July-September quarter. Its revenue for the quarter at ₹1.74 lakh crore. Revenue also fell by 10% compared to the previous quarter.
The EBITDA, or the Earnings Before Interest, Taxes, Depreciation, and Amortisation, of IOCL recorded a decline of 56% and had come to ₹3,773 crore, much below the forecasted ₹11,119 crore. The EBITDA margin also came down to 2.2%, considerably short of the forecasted 6%.
In the National Stock Exchange, Indian Oil Corporation Ltd. (IOCL) shares are currently trading at ₹138.67 which is a 0.65% gain than the previous close. In the last one year Indian Oil Corporation Ltd. (IOCL) shares has gained a total of 8.29% in the last one year, and 16% dip in the last six months.