April 30, 2023
New Delhi, India
IOC Q4 Results: Decline in Net Profit and Revenue
Indian Oil Corporation (IOC) has reported its fourth-quarter results for FY24, showing a significant decline in net profit and revenue compared to the previous quarter.
Net Profit and Revenue:
- IOC’s standalone net profit dropped by 40% quarter-on-quarter (QoQ) to ₹4,837.69 crore.
- Revenue from operations fell by 1.4% QoQ to ₹2,19,875.55 crore from ₹2,23,012.37 crore.
Financial Performance:
- Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 33% to ₹10,435 crore.
- EBITDA margins contracted by 250 basis points (bps) to 5.3% from 7.8% QoQ.
Refining Margins and Throughput:
- Average Gross Refining Margin (GRM) for the year April-March 2024 stood at $12.05 per barrel, down from $19.52 per barrel in the same period last year.
- Refinery throughput in Q4 was 18.282 million metric tonnes (MMT), lower than 19.177 MMT last year.
Segment-wise Performance:
- Petroleum products segment revenue decreased to ₹2.08 lakh crore from ₹2.11 lakh crore QoQ.
- Petrochemicals segment revenue increased to ₹6,908.50 crore from ₹5,983.53 crore, but the segment’s EBIT suffered a loss.
Dividend Announcement:
- IOC’s Board of Directors has recommended a final dividend of ₹7.00 per equity share for the year 2023-24.
Renewable Energy Projects:
- IOC plans to implement 1 GW installed capacity of Renewable Energy (RE) projects, including solar and wind projects, at an estimated cost of ₹5,215 crore through its Wholly Owned Subsidiary (WoS).
- The Board has also approved an investment of ₹1,303.75 crore as equity in the subsidiary for this purpose.
Market Reaction:
- IOC’s share price ended 4.41% lower at ₹169.00 apiece on the BSE following the announcement.
Despite facing challenges in its financial performance, IOC remains committed to diversifying its portfolio with investments in renewable energy projects, reflecting a forward-looking approach towards sustainability and long-term growth.
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