Indian Oil Q4 net profit falls 49% to Rs 5,488 crore; declares dividend of Rs 7/share

Indian Oil declared dividend of Rs 7 per equity share.

Indian Oil Corporation Limited (IOCL) on April 30 reported consolidated net profit of Rs 5,487.92 crore for fourth quarter of financial year 2023-24, a decline of 49 percent from the year-ago period.

The state-run oil retailer posted profit of Rs 10,841.23 crore in the same period last year. Lower profit by the oil marketing company comes as crude oil prices rose 16 percent in the first three months of 2024.

The company’s net profit declined 40 percent sequentially, as it posted profit of Rs 9,224.85 crore in the December quarter. The company’s revenue marginally declined to Rs 2.23 lakh crore in Q4, compared Rs 2.30 lakh crore last year.

Indian Oil declared dividend of Rs 7 per equity share.

In Q4, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 26 percent from the last quarter at Rs 13,660.5 crore, as against Rs 18,491.55 crore in Q3FY24.

IOCL’s average gross refining margin (GRM) for FY24 was $12.05 per barrel, as against $19.52 during the corresponding period last year, the company said in a stock exchange filing.

The company’s refinery throughput was 18.282 million metric tonne (MMT) during the quarter, compared to 19.177 MMT last year. Meanwhile, pipelines throughput came in at 24.593 MMT in Q4.

On the marketing front, IOCL achieved domestic product sales of 23.737 MMT during Jan-Mar 2024 while exports sale of 1.542 MMT in Q4.

IOCL's petroleum products segment reported EBIT of Rs 8,110.86 crore in Q4, lower than Rs 12,100.78 crore in the previous quarter. The company's petrochemical segment EBIT loss came in at Rs 399.75 crore in the March quarter, higher than loss of Rs 196.21 in Q3FY24.

At 2:58 pm, IOCL shares were trading at Rs 169.55 a piece on BSE, 4.10 percent lower than previous day’s close.

Investment approval for green energy subsidiary

On April 30, Indian Oil’s board approved the implementation of 1 GW installed capacity of renewal energy projects, comprising of standalone ground mounted solar or standalone onshore wind or wind-solar hybrid projects. This would be done through the company’s wholly-owned subsidiary at an estimated cost of Rs 5,215 crore including taxes & duties in a phased manner, the company said.

On March 15, Indian Oil proposed a new subsidiary under low-carbon, clean and green energy business to meet company’s operational requirements of the net zero target.

The board has also approved an investment of Rs 1,303.75 crore as equity in the subsidiary.