IndianOil Q4 net tanks 49% as stiff crude price shrinks margin

State-run Indian Oil Corporation (IOC) on Tuesday reported a 49 per cent y-o-y fall in its consolidated net profit at ₹5,488 crore in the fourth quarter of Q4 FY24, on higher crude price shrinking margins. The profits also took a hit due to the ₹2 per litre cut in retail price of petrol and diesel from March 15.

On a sequential basis, the net profit of India’s largest oil marketing company (OMC) fell 41 per cent. Its net losses in the petrochemicals segment widened on a sequential basis during Q4, which also impacted profits.

IOC’s consolidated total income fell by 1 per cent q-o-q and 3 per cent y-o-y to ₹2.25lakh crore in Q4. Total expenses were almost flat on an annual and sequential basis at ₹2.18-lakh crore.

Its average gross refining margin (GRM) for FY24 was $12.05 per barrel, down from $19.52 a year ago. Core GRM, after o setting inventory loss/ gain, stood at $11.44 per barrel in FY24, compared with $20.14 in FY23.

In its results filing with the BSE, IOC said it had a cumulative negative bu er of ₹1,017 crore (2023: ₹2,220 crore) as the retail selling price of LPG was less than the market-determined price (MDP).

Chairman SM Vaidya said IOC’s sales volumes, including exports, were 25.279 mt in

Q4. The refining throughput was 18.282 mt, and the throughput of countrywide pipelines network 24.593 mt.

The company’s board has recommended a final dividend of ₹7 per share for FY24.

RE PROJECT

It also approved the implementation of 1 gigawatt (GW) capacity of RE projects comprising standalone groundmounted solar, standalone onshore wind, or wind-solar hybrid projects at an estimated cost of ₹5,215 crore.

It also approved an investment of ₹1,303.75 crore as equity in its wholly-owned subsidiary for the implementation of 1 GW of installed capacity for RE projects.

For FY24, the OMC reported a consolidated net profit of ₹43,161 crore compared with ₹11,704 crore a year ago. The consolidated total income was ₹8.85-lakh crore, compared with ₹9.56-lakh crore in FY23.

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