IOCL net profit tanks 49% y-o-y in FY24 as margins shrink

New Delhi

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 Q4 FY24, largely on account of shrinking margins and higher prices. The profits also took a hit due to the ₹2 per litre cut in retail prices of petrol and diesel from March 15.

On a sequential basis, the net profit of India’s largest oil marketing company (OMC) fell by 41 per cent. It reported a widening of net losses in its petrochemicals segment on a sequential basis during Q4 FY24, 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 ₹2.25-lakh crore in Q4 FY24. 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, compared with $19.52 a year ago. Core GRMs, after offsetting inventory loss/gain, stood at $11.44 per barrel in FY24, compared with $20.14 in FY23.

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

IOC Chairman SM Vaidya said IOC’s product sales volumes, including exports, were 25.279 mt in Q4 FY24. The refining throughput was 18.282 mt, and the throughput of countrywide pipelines network was 24.593 mt.

The company’s board has recommended a final dividend of ₹7 per share for FY24. It also approved the implementation of 1 gigawatt (GW) capacity of RE projects comprising standalone ground-mounted 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. Consolidated total income was ₹8.85 crore, compared with ₹9.56-lakh crore.

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