Indian Oil Q1 results: Net profit jumps 37% sequentially to Rs 13,750 crore, beats Street estimates

Indian Oil Corporation (IOC) on Friday reported a standalone net profit of Rs 13,750.4 crore for the quarter ended June 2023, beating analysts' estimates. That translated into an increase of 36.7 per cent compared with the previous three months. 

The state-run oil marketing company's revenue, however, contracted to Rs 2,21,145.4 crore for the first quarter of the current financial year, from Rs 2,26,492.1 crore for the quarter ended March, according to a regulatory filing. 

According to Zee Business research, Indian Oil's quarterly net profit was estimated at Rs 6,900 crore and revenue at Rs 1,90,550 crore.

Revenue from petroleum products shrank 2.7 per cent to Rs 2,11,044 crore and from petrochemicals increased 7.1 per cent to Rs 6,728.3 crore on a quarter-on-quarter basis, according to the filing. 

IOC said its average gross refining margin — a key measure of profitability — stood at $8.34 per barrel for the June quarter, as against $31.81 per barrel for the corresponding period a year ago. 

IOC shares slipped into the red minutes after the earnings announcement, declining as much as 1.4 per cent to Rs 94.3 apiece on BSE. 

Indian fuel retailers have recovered some of the losses in the June quarter due to higher marketing margins, having sold fuel at a loss last year, according to analysts.

The country’s fuel demand slipped in June due to monsoon rains, after soaring in May when diesel sales scaled a record high on strong factory activity.

Indian refiners have also been buying cheaper Russian crude.

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

(With inputs from Reuters)

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