Indian Oil Q4 Results: Profit Jumps On Higher Sales, Margin

India Oil Corp. Ltd.’s net profit for the fourth quarter of fiscal 2023 surged on account of higher operating sales and margins.

Net profit for the state-run refiner rose 52.92% year-on-year to Rs 10,841.23 crore, it said in its exchange filing. That compares with a consensus estimate of Rs 301.5 crore by analysts tracked by Bloomberg.

IOCL Q4 FY23 Highlights (YoY)

• Revenue from operations rose 10.36% to Rs 2,30,711.56 crore, as against an estimate of Rs 2,31,056 crore.

• Operating profit, or Ebitda, was up 24.04% at Rs 17,699.35 crore, as compared with an estimate of Rs 1,278.6 crore.

• Ebitda margin rose 90 basis points to 7.7% versus 6.83% a year ago.

• In Q4, the company made a foreign exchange gain of Rs 1,018.04 crore as against a loss of Rs 1,021.20 crore over the same period last year.

The other expenses for FY23 included a foreign exchange loss of Rs 7,161.81 crore, as compared with a loss of Rs 1,452.28 crore a year ago, the company said in its profit and loss note.

"The parent company is suffering under-recoveries from the sale of domestic LPG since FY22," the company said in the note. "To compensate for under-recoveries, the government of India approved a one-time grant of Rs 10,801 crore, and the same has been recorded under revenue from operations in FY23."

The company has also recommended a final dividend of Rs 3 per equity share, subject to approval by shareholders at the annual general meeting.

Shares of IOCL rose 3.55% on Tuesday, as compared with a 0.66% fall in the benchmark Sensex.