Q1 FY25: Indian Oil’s net profit plunges 75% y-o-y; EPS down from 10.48% to 2.56%

New Delhi: The net profit of India’s largest oil marketing company (OMC), Indian Oil Corporation (IOC), plunged 75 percent in Q1 of FY2024-25 year-on-year on account of weak Gross Refining Margin (GRM) and high crude oil prices. While the state-run oil PSU had recorded a consolidated net profit of Rs 14,735.30 crore in the June quarter of 2023-24, the figure has plummeted to Rs 3,722.63 crore in the June quarter of the current financial year. On quarter-on-quarter basis, the consolidated net profit has dropped by 32.16 percent.

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The standalone net profit of Indian Oil has dropped 81 percent, from Rs 13,750.44 crore in Q1 of FY2023-24 to Rs 2,643.18 crore in Q1 of the current fiscal. On quarter-on-quarter basis, the standalone net profit has dropped 45.36 percent.

Average GRM for the Q1 period of FY2024-25 was USD 6.39 per barrel, which was lesser than USD 8.34 per barrel recorded in April-June period of 2023-24. The core GRM or the current price GRM for Q1 FY25, after offsetting inventory loss, comes to USD 2.84 per barrel.

Indian Oil’s total income declines 2.33 percent

IOC recorded standalone total income of Rs 2,15,988.76 crore in the June quarter of FY2024-25, which was 2.33 per cent lower than Rs 2,21,145.42 crore recorded in the corresponding quarter of the previous fiscal year. On quarter-on-quarter basis, the total income dropped by 1.77 percent. Even though the PSU’s total income figures have dropped slightly, the expenses have swelled up mainly due to a rise in cost of materials consumed and higher impairment loss.

The consolidated total income has dropped from Rs 2,26,041.72 crore in Q1 of FY2023-24 to Rs 2,20,396.99 crore in Q1 of FY25, a drop of 2.49 percent. On quarter-on-quarter basis, the consolidated total income has dropped 2.09 percent. Indian Oil reported a consolidated Profit before Tax (PBT) of Rs 4,841 crore in Q1 FY25, down from Rs 19,450.11 crore recorded in the year-ago period. Standalone PBT was Rs 3,452.71 crore as opposed to Rs 18,073.84 crore recorded in the June quarter of the previous fiscal.

EPS drops from 10.48% to 2.56%

Earnings per Share (EPS) dropped from 10.48 percent in Q1 FY24 to 2.56 percent in Q1 FY25. “The MoPNG, vide letter dated 30.04.2020 had conveyed to Oil Marketing Companies (OMCs) that where Market Determined Price (MDP) of LPG cylinders is less than its Effective Cost to Customer (ECC), the OMCs will retain the difference in a separate buffer account for future adjustment. However, as on 30th June 2024, the Company had a cumulative net negative buffer of Rs 5,156.53 crore as the retail selling price was less than MDP,” said Indian Oil.

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