Indian Oil's Q3 profit falls 33% QoQ to Rs. 9,224cr
Indian Oil Corporation Limited (IOCL) announced a consolidated net profit of Rs. 9,224.85 crore for Q3 FY23-24, a significant jump from Rs. 890.28 crore during the same period last year. However, the net profit experienced a 33% drop QoQ from Rs. 13,713.08 crore recorded in the July-September quarter. The state-owned oil marketing company's revenue from operations reached Rs. 2.26 lakh crore in Q3, up from Rs. 2.05 lakh crore in the prior quarter.
Factors that impacted Indian Oil's Q3 performance
The decrease in Indian Oil's QoQ net profit is due to significant inventory losses and a sharp decline in diesel cracks. A crack is the difference in price between a refined product and crude oil. Despite these challenges, Indian Oil surpassed market expectations thanks to the improved marketing margins compared to last year. The company's average gross refining margin for the first nine months of FY24 was $13.26 per barrel, lower than $21.08 during the same period last year.
Indian Oil's Q3 sales and throughput figures
In Q3, Indian Oil's domestic product sales remained stable at 23.328 million metric tonnes (MMT), compared to 23.170 MMT last year. The company's refinery throughput and pipeline throughput were 18.502 MMT and 25.212 MMT during the quarter, respectively. As of January 24, IOCL shares were trading at Rs. 144.60 a piece on the BSE, a 4% increase from the previous day's close.
