IOC Q2 Results: Revenue Dips 11% YoY, Net Profit At Rs 12,967 Crore

IOC posted it’s second-quarter (Q2) profit at Rs 12,967 crore for the current fiscal year (FY24), registering a decline of over 5 per cent against the first quarter of FY24.

The state-owned Indian Oil Corporation Ltd posted it’s second-quarter (Q2) profit at Rs 12,967 crore for the current fiscal year (FY24), against a loss of Rs 272 crore reported in the second quarter of the previous fiscal year (FY23). The fuel retailer, via an exchange filing, displayed positive results on a year-on-year (Yoy) basis. 

However, compared to the preceding quarter in FY24, the company posted a drop of over 5 per cent in it’s net profit in the reporting period. The company credited the year-on-year growth to lower crude oil input costs and inventory gains. 

The country’s largest PSU oil refining and marketing company stated that it’s revenue from operations for the quarter under review declined 11 per cent to Rs 2.02 lakh crore, compared to Rs 2.28 lakh crore logged in the corresponding quarter a year earlier. 

The firm also revealed that it’s average gross refining margin (GRM) for the first six months of the current fiscal year stood at $13.12 per barrel, as compared to $25.49 per barrel in the same period a year earlier. The gross refining margin represents the money earned by the firm on converting every barrel of crude oil into fuel. 

The oil company noted that it’s revenue from petroleum products decreased 12 per cent during the reporting period on a YoY basis. The profit before tax of the firm stood at Rs 17,169.9 crore in Q2FY24, against a loss of Rs 244.23 crore logged in the same period a year earlier. 

IOC also announced an interim dividend of 50 per cent, coming at Rs 5 per equity share of the face value of Rs 10 each, and decided that November 10 will be the record date to determine the shareholders eligible for payout. 

“Pursuant to Regulation 30 of SEBI (LODR), it is hereby informed that the Board has declared an Interim Dividend of 50% i.e. Rs. 5/- per equity share of face value of Rs.10/- each for the year 2023-2024. It may also be noted that, pursuant to Regulation 42 of SEBI (LODR), the Board has fixed Friday, 10th November 2023 as the "record date" for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend. The Interim Dividend would be paid to eligible shareholders on or before 30th November 2023,” the oil retailer said in it’s results. 

Notably, government-owned fuel retailers BPCL, IOC, and HPCL last year froze prices even as global oil prices surged after Russia invaded Ukraine. This was done to shield the consumers from price volatility. 

Shares of the company were trading at Rs 89.75 a piece prior to the closing bell at 3:15 PM, registering an increase of over 1 per cent.