Indian Oil Corporation Q4 Results: Net Profit Tumbles 49% Amid Rise in Crude Oil Prices

Indian Oil Corporation Limited (IOCL) reported a consolidated net profit of Rs 5,487.92 crore for the fourth quarter of the financial year 2023-24, marking a decline of 49 percent compared to the same period in the previous year. This downturn is notable, given that the state-run oil retailer had posted a profit of Rs 10,841.23 crore during the corresponding period the year before. The decline in profitability coincides with a 16 percent increase in crude oil prices during the first three months of 2024, according to a moneycontrol.com report.

Sequentially, IOCL’s net profit witnessed a 40 percent decline from the preceding quarter, with the company reporting a profit of Rs 9,224.85 crore in the December quarter. Meanwhile, the company’s revenue experienced a marginal decrease, amounting to Rs 2.23 lakh crore in Q4 compared to Rs 2.30 lakh crore in the previous year.

Despite the challenging financial performance, Indian Oil declared a dividend of Rs 7 per equity share. However, its earnings before interest, tax, depreciation, and amortisation (EBITDA) witnessed a significant decline of 26 percent from the previous quarter, standing at Rs 13,660.5 crore in Q4 FY24 compared to Rs 18,491.55 crore in Q3 FY24.

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IOCL attributed its performance to several factors, including a decrease in the average gross refining margin (GRM) for FY24. The GRM for the financial year stood at USD 12.05 per barrel, a considerable drop from USD 19.52 during the corresponding period in the previous year. Additionally, the company’s refinery throughput recorded a decline, with 18.282 million metric tonne (MMT) processed during the quarter, down from 19.177 MMT in the same period last year. Similarly, pipelines throughput also decreased to 24.593 MMT in Q4.

Despite these challenges, IOCL continued to make strides on the marketing front. From January to March 2024, the company achieved domestic product sales of 23.737 MMT. Additionally, export sales amounted to 1.542 MMT in Q4, showcasing IOCL’s commitment to maintaining its market presence despite the prevailing economic conditions.

Indian Oil Corporation Limited faced significant challenges in the fourth quarter of the financial year 2023-24, experiencing a notable decline in profitability and key operational metrics.

Indian Oil Corporation ended the session at Rs 168.95, down Rs 7.80 or 4.41 percent.

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