Indian Oil Corp.'s profit fell sequentially in the first quarter of financial year 2025, missing analysts' estimates by a wide margin.
The government-owned oil marketing company's standalone net profit declined to Rs 2,643 crore in the April–June period, as compared to Rs 4,838 crore in the previous quarter, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had set a consensus estimate of Rs 4,330.95 crore.
IOCL Q1 FY25 Earnings Highlights (Standalone, QoQ)
Revenue down 1.77% to Rs 1.93 lakh crore (Bloomberg estimate: Rs 2.07 lakh crore).
Ebitda down 17.26% to Rs 8,634.7 crore (Bloomberg estimate: Rs 9,253.33 crore).
Margin at 4.46% versus 5.27% (Bloomberg estimate: 4.5%).
Net profit down 45.36% to Rs 2,643.18 crore (Bloomberg estimate: Rs 4,330.95 crore).
What Caused The Weakness?
The substantial decline in net profit and Ebitda were on account of two factors.
The first factor was weakness in the refining segment, where average gross refining margin for the quarter stood at $6.39 per barrel. This stands 23.4% lower than the $8.34 per barrel level a year ago.
The second factor was the loss in LPG sales. The company reported LNG under-recoveries to the tune of Rs 5,156.53 crore, due to the difference between the subsidised retail selling price and the actual cost.
Physical Performance
Indian Oil's Q1 FY25 refinery throughput remained flat, while the pipeline throughput for the quarter grew 5% on a sequential basis.
Domestic product sales saw a 1% quarter-on-quarter uptick to 24.063 million metric tonne, while exports saw a 23% decline to 1.189 million metric tonne.
Indian Oil Corp. shares were trading 1.78% higher at Rs 183.6 apiece as of 3:22 p.m., as against a rise of 0.04% in the NSE Nifty 50.
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