Indian Oil Q3 net profit jumps multi-fold at Rs 9,225 crore on healthy marketing margins

Indian Oil Corporation Limited (IOCL) on January 24 reported consolidated net profit of Rs 9,224.85 crore for the third quarter of financial year 2023-24, a multi-fold increase from Rs 890.28 crore reported last year. Healthier marketing margins from last year helped the company book profits in the quarter under review.

However, Indian Oil's net profit declined 33 percent sequentially, as it posted a profit of Rs 13,713.08 crore for the July-September quarter. Profit slipped in Q3 from last quarter amid large inventory losses and sharp decline in diesel cracks.

The state-run oil marketing company beat market estimates as its revenue from operations came in at Rs 2.26 lakh crore in Q3, compared to Rs 2.05 lakh crore in the previous quarter. However, its revenue declined 2.6 percent from last year.

IOCL’s average gross refining margin (GRM) for the first nine months of FY24 was $13.26 per barrel, as against $21.08 during the corresponding period last year, the company said in a stock exchange filing. The core GRM or the current price GRM for the period April - December 2023 after offsetting inventory loss/ gain comes to $11.73 per bbl, said Indian Oil.