Indian Oil Q4 Results: Profit Falls 40%, Margin Contracts 250 Basis Points
Indian Oil Corp.'s standalone net profit fell 40% sequentially in the fourth quarter of financial year 2024, missing analysts' estimates.
The government-owned oil marketing company's profit fell to Rs 4,837.7 crore in the January–March period in comparison to Rs 8,063.3 crore in the previous quarter, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had a consensus estimate of Rs 7,352 crore.
IOC Q4 FY24 Earnings Highlights (Standalone, QoQ)
Revenue down 1.41% to Rs 1.98 lakh crore vs Rs 1.99 lakh crore (Bloomberg estimate: Rs 1.92 lakh crore).
Ebitda down 32.6% to Rs 10,435.2 crore vs Rs 15,488 crore (Estimate: Rs 15,635.6 crore).
Margin at 5.27% vs 7.77% (Estimate: 8.2%).
Net profit down 40% to Rs 4,838 crore vs Rs 8,063.4 crore (Bloomberg estimate: Rs 7,352 crore)
Product Sales
IOC's domestic sales rose 1.75% quarter-on-quarter to 23.7 million tonnes, while exports rose 19% to 1.54 MT.
ThroughputÂ
The oil marketing company's refinery throughput fell 1.2% to 18.3 MT, whereas its pipeline throughput fell 2.5% quarter-on-quarter to 24.6 MT.
Gross Refining Margin
The average gross refining margin for fiscal 2024 stood at $12.05 per barrel compared to $19.52 per barrel of oil a year ago.
Segment-Wise Revenue
IOC's petroleum product segment, which accounts for 92% of the company's standalone revenue, saw a 1.6% quarter-on-quarter and 4% year-on-year dip in revenues to Rs 2.08 lakh crore in the quarter ended March 2024. The petrochemicals segment saw a 15.5% surge in revenue on a sequential basis.
Investments Approved
IOC's board also approved the implementation of 1 gigawatts of installed capacity of renewable energy projects.
This comprises ground-mounted solar or standalone onshore wind or wind-solar hybrid projects. The estimated cost of implementation for the approved projects is at Rs 5,125 crore. The board also approved the investment of Rs 1,303.8 crore as equity in the proposed project.
Shares of IOC were trading 4.21% lower at Rs 169.30 apiece on the NSE after the results were announced, compared to a 0.09% decline in the benchmark Nifty 50 at 3:10 p.m.
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