IOC Q1 Result: Company posts loss of Rs 1,992 crore; revenue jumps 62.5% YoY

State-owned oil marketing company (OMC) Indian Oil Corporation Limited on Friday reported a loss of Rs 1,992.53 crore in the April-June quarter of the financial year 2022-23 (Q1FY23) as compared to a profit of Rs 5,941.37 crore in the same quarter in the previous fiscal. 

The company reported a quarterly net loss for the first time in more than two years, as the country`s top refiner sold fuel at a discount in the domestic market while its costs jumped, a news agency Reuters said in its report.

Indian fuel retailers such as IOC, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation have not revised pump prices for months to insulate consumers from the global crude price surge, helping the government`s efforts to mitigate the impact of inflation.

State refiners have had to step up domestic sales of fuel and have suffered marketing losses despite buying cheaper Russian crude as private refiners reduced their share to focus on exports due to higher margins.

Meanwhile, the company’s revenue from operations jumped by 62.5 per cent to Rs 2,51,932.89 crore in the June-end quarter as against Rs 1,55,056.27 core in a year-ago quarter.  

Average Gross Refining Margin (GRM) for the period April- June 2022 stood at $31.81 per bbl (April- June 2021: $6.58 per bbl), the company said in its results filing. 

Similarly, the core GRM or the current price GRM for the period April -June 2022 after offsetting inventory loss/ gain comes to $25.34 per bbl, Indian Oil Corporation further said.  

However, the suppressed marketing margins of certain petroleum products have offset the benefit of an increase in GRM, it said in a regulatory filing. 

IOC said it sold 24.6 million tonnes of petroleum products, including exports, while its refining throughput was 18.9 million tonnes during the quarter.

Indian Oil, along with its unit Chennai Petroleum, controls about a third of India`s five million barrels-per-day refining capacity. 

Shares of Indian Oil Corporation closed over 1 per cent higher to Rs 72.95 per share on the BSE as against 1.25 per cent rise in the S&P BSE Sensex.