IOC reports 81% drop in June quarter net profit; what should investors do?
Global brokerages have revised their stance on Indian Oil Corporation (IOC) after the nation's largest oil firm, on Tuesday, during market hours, reported an 81 per cent drop in June quarter net profit, as refinery and marketing margins fell and the firm booked under-recovery on the sale of domestic cooking gas LPG at government-controlled rates.
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IOC PAT
IOC PAT
IOC reported a standalone net profit of Rs 2,643.18 crore in the April-June period -- the first quarter of the current 2024-25 fiscal year -- compared to a profit of Rs 13,750.44 crore a year back, the company said in a stock exchange filing. Net profit also declined sequentially, when compared to an earning of Rs 11,570.82 crore in the January-March quarter.
IOC GRM
IOC GRM
While the firm earned USD 6.39 on turning every barrel of crude oil into fuel in the quarter (USD 8.34 per barrel gross refining margin (GRM) last year), its pre-tax earnings from downstream fuel retailing businesses slumped 77 per cent to Rs 4,299.96 crore.
IOC LPG subsidy
IOC LPG subsidy
IOC had an un-compensated LPG subsidy of Rs 5,156.23 crore in the quarter, the filing showed.
IOC fuel sales
IOC fuel sales
Fuel sales were up three per cent at 24.06 million tonnes (excluding exports).
Here is what brokerages recommend
Here is what brokerages recommend
Jefferies
Jefferies
By maintaining a 'hold', the brokerage raised the target to Rs 180 from Rs 175.
JP Morgan
JP Morgan
The brokerage maintained an 'overweight' rating and cut the target of Rs 191 from Rs 195.
Morgan Stanley
Morgan Stanley
By maintaining an 'overweight' rating, the brokerage gave a target of Rs 191.
CLSA
CLSA
By maintaining an 'underperform' rating, the brokerage gave the target of Rs 120.
Citi
Citi
By maintaining a 'buy' rating, the brokerage gave the target of Rs 205.