IOC Q3 Results: Net profit jumps to ₹8,063 crore on healthy marketing margins
Indian Oil Corporation (IOC) on Wednesday reported a massive jump in its third quarter net profit as compared to the year-ago period when it was financially struggling as input raw material crude oil prices spiked but retail finished product prices remained on freeze. Standalone net profit of ₹8,063.39 crore in October-December 2023-24 was higher than ₹448.01 crore profit in the same period a year ago but lower than ₹12,967.32 crore earnings in the preceding three months ended September 30, 2023, according to a stock exchange filing by the company. The profit was aided by a boost in marketing margins as a freeze on petrol and diesel price revision despite a fall in input crude oil prices helped recover losses incurred when rates were high in 2022-23.
Pre-tax earnings from the sale of petroleum products soared to ₹11,428.88 crore in the third quarter of the current fiscal compared to ₹1,541.95 crore in the same period last year. IOC uses mostly imported crude oil to make fuels such as petrol, diesel and LPG at its refineries. These are then sold through its vast network of petrol pumps and LPG distributor agencies.
In 2022, state-owned fuel retailers IOC, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) froze prices despite a spike in global oil prices following Russia's invasion of Ukraine. This was with a view to insulating consumers from price volatility. The price freeze led to the three firms incurring losses in the first half of 2022-23 fiscal (April 2022 to March 2023).
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