Indian Oil Corporation Q4 result preview: PAT seen increasing over 15x, revenue likely to dip 6.9%

IOC Q4 result preview: Indian Oil Corporation (IOC), the state-owned oil marketing company, is likely to report a 15.4 times growth in profit after tax (PAT) at Rs 6,900 from Rs 448 crore in the quarter ending December 2022, according to Zee Business Research.

On the flip side, the oil company’s revenue is expected to be down by 6.9 per cent to Rs 1,90,550 as compared to Rs 2,04,740.2 crore quarter-on-quarter (QoQ) for Q4FY2023. The company is likely to report adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 13,000 crore against Rs 3,593.4 crore in the previous quarter. On a QoQ basis, EBITDA may increase by 3.6 times.

The company's margin — a key measure of profitability for a business — is likely to increase by 505 basis points to 6.8 per cent from 1.75 per cent QoQ. Marketing margins may rise which shall boost EBITDA and gross refining margins (GRMs) according to the report.

According to the Zee Business report, refining throughput may increase by two to three per cent. On the other hand, volumes may decline by 5 per cent.

On Monday, May 15, 2023, shares of IOC traded 0.42 per cent higher on BSE at Rs 83.9 apiece, and on NSE, the stock traded at Rs 83.8 per share. IOC shares have risen over 20 per cent in value in the past six months, a period in which headline indices Nifty50 declined 0.26 per cent each.

About IOC

Indian Oil Corporation Limited is one of the leading petrochemical players in India under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. It is headquartered in New Delhi. The company has over 34,000 fuel stations spread across India.

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