IOCL Q4 result preview: PAT and revenue likely to decline; EBITDA to rise slightly

Indian Oil Corporation Q4 Preview: Indian Oil Corporation (IOCL), the state-owned oil marketing company (OMC)  is all set to announce its fourth quarter (Q4 FY24) numbers on April 30. The public sector undertaking (PSU) is likely to report a mixed set of numbers due to weak refining.

Zee Business analysts estimate the company's standalone net profit at Rs 8,000 crore, against Rs 8,063 crore logged in the previous quarter, which implies a one per cent decline. 

The reduction in profit can be attributed to decreasing throughput and marketing volume. The throughput is expected to slip by four to five per cent due to the maintenance shutdown.

Meanwhile, the revenue is expected to fall 2.5 per cent to Rs 1,94,125 crore against Rs 1,99,104 crore registered in the December quarter. Furthermore, analysts predict the earnings before interest, tax, depreciation, and amortisation (EBITDA) to change slightly QoQ to 15,229 crore from Rs 15,192 crore.

The margin of the company is likely to increase 37 basis points (bps) to 8 per cent against 7 per cent in the previous quarter.

Moreover, as per the research desk, the diesel margin is estimated at Rs 2/litre (+2 QoQ), Petchem is likely to remain soft due to weak realisation, and gross refining margins (GRM) are expected at $12–15/bbl.

As of 2:58 p.m., shares of IOCL traded 2.97 per cent, or Rs 5.10, higher on the BSE at Rs 176.65 apiece. In a year, shares of Indian Oil Corporation have given a multi-bagger return of over 115 per cent as against the Nifty 50's rise of over 24 per cent. 

About Indian Oil Corporation 

Indian Oil Corporation Limited is a Government of India undertaking formed in 1964 by the merger of Indian Oil Company Limited with Indian Refineries Limited. It is a diversified, integrated energy major with a presence in almost all the streams of oil, gas, petrochemicals, alternative energy sources, and R&D. 

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