Higher marketing margins led to over 4.8 times hike in FY24 net profit of Indian Oil Corporation

New Delhi [India] April 30 (ANI): Oil major, Indian Oil Corporation has made a net profit of Rs 39,619 crore in FY 2023-24 as compared to Rs 8,242 crore in the FY 2022-23. IOC says the higher net profit is because of the higher marketing margins as compared to the last year.
However, the company made a loss in the fourth quarter of FY24 because of higher crude prices and low refining margins. Net Profit in Q4 plunges 52 percent to Rs 4,838 crore from Rs 10,059 cr in Q4 of FY23.
Although results of Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) are yet to come, sources told ANI, "Three oil companies IOC, BPCL and HPCL will make a combined net profit of nearly Rs 1 lac crore in FY 2023-24."
The company witnessed nearly fourfold hikes in net profit compared to the previous year, marking a notable achievement amidst changing market dynamics.
For the fiscal year 2023-24, IndianOil reported Revenue from Operations of Rs 8,66,345 crores, compared to Rs 9,34,953 crores in the previous year.
This growth was primarily attributed to higher marketing margins compared to the previous year.
In the fourth quarter of 2023-24, IndianOil's Revenue from Operations stood at Rs 2,19,876 crores, compared to Rs 2,26,492 crores in the corresponding quarter of the previous year.
The Net Profit for the fourth quarter was Rs 4,838 crores, a decrease from Rs 10,059 crores in the same quarter of the previous year.
The Board of Directors recommended a final dividend of Rs 7.00 per equity share for FY 2023-24, subject to approval by the members of the Company in the Annual General Meeting.
This is in addition to the interim dividend of Rs 5.00 per equity share paid during the year.
IndianOil Chairman, SM Vaidya, commented, "IndianOil sold 97.551 million tonnes of products, including exports, during FY 2023-24. Our refining throughput for FY 2023- 24 was 73.308 million tonnes and the throughput of the Corporation's countrywide pipelines network was 98.626 million tonnes during the year. The gross refining margin (GRM) for FY 2023-24 was USD 12.05 per bbl as compared to USD 19.52 per bbl in previous financial year."
For the fourth quarter of FY 2023-24, IndianOil's product sales volumes, including exports, amounted to 25.279 million tonnes.
The refining throughput was 18.282 million tonnes, and the throughput of the Corporation's countrywide pipelines network was 24.593 million tonnes during the quarter. (ANI)