Indian Oil Corporation Q3 Results: Net Profit Plunges 64% to Rs 2,874 Crore
Indian Oil Corporation (IOC), India’s largest state-owned oil refiner, reported a 64% year-on-year (YoY) decline in net profit for the third quarter of FY25, falling to Rs 2,874 crore from Rs 8,063 crore in the same quarter last year. The company’s revenue from operations also dipped by 3% YoY to Rs 2.17 lakh crore, reflecting challenges in refining margins and operational expenses.
Key Highlights of Indian Oil Corporation Q3 Results
Financial Performance
- Net Profit: Declined by 64% YoY to Rs 2,874 crore, compared to Rs 8,063 crore in Q3 FY24.
- Revenue from Operations: Fell by 3% YoY to Rs 2.17 lakh crore, down from Rs 2.23 lakh crore in the same quarter last year.
- Total Expenses: Rose marginally to Rs 2.16 lakh crore.
- Earnings Per Share (EPS): Stood at Rs 2.09 for the quarter.
Operational Performance
- Gross Refining Margin (GRM): Averaged $3.69 per barrel for April-December 2024, significantly lower than $13.26 per barrel in the same period last year.
Market Reaction
Following the Q3 results, shares of Indian Oil Corporation dropped over 3%, closing at Rs 124.20 on January 27. The stock is currently trading just 2% above its 52-week low of Rs 121.25 and remains 37% below its 52-week high of Rs 196.80. The company’s market capitalization stands at approximately Rs 1.75 lakh crore.
Industry Position
Indian Oil Corporation, along with its subsidiary Chennai Petroleum, controls about one-third of India’s total refining capacity, which stands at five million barrels per day. Despite the challenging quarter, IOC remains a key player in India’s energy sector.
Conclusion
Indian Oil Corporation’s Q3 FY25 results reflect the impact of lower refining margins and rising operational costs. While the company continues to play a pivotal role in India’s energy landscape, its financial performance highlights the challenges faced by the oil and gas sector. Investors should closely monitor the company’s ability to recover refining margins and manage expenses in the coming quarters.
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