Indian Oil Corporation (IOC) reported a consolidated net loss for the first quarter, but the performance was significantly better than the Street's worst-case expectations, aided by stronger-than-expected revenue and a positive operating profit.
The state-run oil marketing company posted a net loss of Rs 2,661 crore for the quarter, compared with Bloomberg estimates of a loss of Rs 20,295 crore. The company had reported a profit of Rs 11,378 crore in the preceding quarter.
Revenue from operations rose 26.2% sequentially to Rs 2.62 lakh crore, comfortably beating analysts' estimate of Rs 2.36 lakh crore. Revenue stood at Rs 2.08 lakh crore in the March quarter.
IOC reported an Ebitda of Rs 1,947 crore during the quarter, significantly outperforming expectations of an Ebitda loss of Rs 14,473 crore. However, operating profit declined sharply from Rs 20,716 crore reported in the previous quarter.
IOC Q1 Result Highlights (Cons, QoQ)
- Net Loss at Rs 2,661 crore versus profit of Rs 11,378 crore.
- Revenue up 26.2% at Rs 2,62,000 crore versus Rs 2,08,000 crore.
- Ebitda down 90.6% at Rs 1,947 crore versus Rs 20,716 crore.
- Margin at 0.7% versus 10%.
Ebitda fell 90.6% sequentially, while the Ebitda margin contracted to just 0.7% from 10% in the preceding quarter, reflecting significant pressure on refining and marketing profitability.
Despite the steep decline in earnings compared with the previous quarter, the results were considerably better than feared by the market, particularly at the operating level. The company remained Ebitda positive against expectations of a substantial operating loss, while the reported net loss was far lower than consensus estimates.
IOC Share Price Today
The shares of Indian Oil Corp. closed 0.16% higher at Rs 140.17 per share. The shares rose 1.10% in one week and 0.44% in one month. However, year-to-date shares fell 15.61% and they were down 3.87% in one year.
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