IOC net vaults to decade high of Rs 13,750cr in Q1

NEW DELHI: India’s largest oil refiner and fuel retailer IndianOil on Friday posted a net profit of Rs 13,750 crore in the June quarter against a loss of Rs 1,992 crore a year ago as a drop in oil prices since January turned petrol and diesel sales profitable in spite of pump prices remaining frozen since May 2022.

This is the highest quarterly profit posted by the company in a decade. It had posted a profit of Rs 14,513 crore in the January-March period of 2013, or the fourth quarter of 2012-13 financial year on the back of fuel subsidy for more than one quarter during those three months.
Sequentially, the profit during the period under review marked an increase of 37% from Rs 10,058 crore net posted in the preceding quarter.

The profit came in spite of refining margin dropping from $31.8 per barrel in the previous corresponding quarter to $8.3 in the quarter under review. Revenue too declined more than 2% to Rs 2.2 lakh crore even though sales rose to Rs 21.8 million tonnes from 21.2 million tonnes in the previous corresponding period.
Also, the June quarter earning is more than half of the Rs 24,184 crore annual profit — its highest till date — the company had posted in 2021-22.