IOC Q1 preview: Standalone profit likely to slump 38% QoQ; stock up nearly 2% ahead of its quarterly show

Indian Oil Corporation- the state-run oil marketing company is slated to release its Q1 numbers on Tuesday (July 30). The company's standalone profit is estimated to fall sharply by 38 per cent to Rs 3,000 crore versus Rs 4,837.7 crore reported in Q4FY24. The result may be impacted as the company's gross refining margins (GRMs) are seen to take a hit during the reporting quarter.

The revenue at the state-run oil refiner is expected to climb higher marginallyby 0.35 per cent to Rs 1,98,500 crore from Rs 1,97,978.2 crore reported in the previous quarter. EBITDA- a key profitability metric in Q1FY25 is expected to decline 16.15 per cent to Rs 8,756 crore as against Rs 10,435.2 crore in the previous March quarter. The margins at te company is also seen to see a blow by the research desk- estimated to fall by 90 bps to 4.4 per cent as against 5.3 per cent in the previous March quarter.

Some of the concerns at the company seen for the reporting quarter are a likely decline in the refining margins, flat marketing margins and a decline in the marketing volume. Also, throughput at the company is also estimated to fall by 2 per cent sequentially at the concern.

Refinery throughput is the sum of the transformations that take place in refineries for conventional crude oil, feedstocks, other hydrocarbons, additives and oxygenates, and natural gas liquids.

Also, the gross refining margin during Q1 is seen to fall. In the previous FY, GRM at the downstream company was recorded at $12.05 per barrel. This was 38.2 per cent lower than the $19.52 per barrel recovered in the same period of the previous financial year. “The core GRM or the current price GRM for FY24 after offsetting inventory loss or gain comes to $11.44 per barrel,” it said.30 Apr 2

IOC share performance

Ahead of its results tomorrow, shares of the company traded higher by nearly 2 per cent. In the last one year, the stock has gained a steep 89 per cent, nearly doubling investors' money.