State-run Indian Oil Corporation (IOC) on Friday reported a consolidated net loss of ₹279.38 crore in Q1 FY23 against a net profit of ₹6,110 crore a year-ago.

The oil refiner reported a total income of ₹2.56 lakh crore in Q1 FY23 against ₹1.57 lakh crore in Q1FY22.

In Q4 FY22, the CPSU reported a consolidated net profit of ₹6,646 crore and total income of ₹2.10 lakh crore.

On a standalone basis, the OMC’s net loss was steeper at ₹1,992.53 crore in Q1 FY23 against a net profit of ₹6,021.88 crore in Q4 FY22 and ₹5,941.37 crore in Q1 FY22.

“Average Gross Refining Margin (GRM) for the period April- June 2022 is $31.81 per barrel (April- June 2021: $6.58 per bbl). The core GRM or the current price GRM for the period April -June 2022 after offsetting inventory loss/ gain comes to $25.34 per bbl. However, the suppressed marketing margins of certain petroleum products have offset the benefit of increase in GRM,” IOC said in a filing on stock exchanges.

Brokerage ICICI Securities in a report said IOC’s refining operations reported healthy profits), weaker marketing profitability led to lower-than-expected earnings.

The company achieved a crude throughput of 18.9 million tonnes (MT) in Q1FY23 (up 3.7 per cent QoQ), in line with estimates. Core refining reported healthy profits and stood at $25.3 a barrel. Inventory gain of $6.5 per barrel supported overall margins and improved profitability for the segment, it added.

“IOC’s crude throughput and marketing sales improved QoQ in Q1FY23. On refining front, product cracks have dipped from elevated level and GRMs trend will be key monitorable. In marketing segment, passing on higher retail prices of Petrol & Diesel to customers (due to higher crude oil costs) will be important for IOC’s performance in the near term,” the brokerage said.