Indian Oil Corporation Q2 Results: Net profit falls 98% on lower refining

State-owned Indian Oil Corporation Ltd (IOC) connected Monday reported a monolithic 98.6 per cent driblet successful nett net successful the September quarter, arsenic refinery margins fell and selling margins shrunk.

The institution posted a standalone nett net of Rs 180.01 crore successful the July-September play -- the 2nd 4th of the existent 2024-25 fiscal twelvemonth -- compared with a nett of Rs 12,967.32 crore a twelvemonth back, according to a banal speech filing by the company.

The nett besides declined sequentially, erstwhile compared to an earning of Rs 2,643.18 crore successful the April-June period.

While refinery margins fell, the institution besides booked under-recoveries connected selling home cooking state LPG astatine government-controlled cost, which was little than the cost.

For the six months ended September 30, IOC had an under-recovery connected LPG of Rs 8,870.11 crore, the filing showed.

It earned USD 4.08 connected turning crude lipid into fuels similar petrol and diesel arsenic compared to gross refining borderline of USD 13.12 per tube past year.

Pre-tax net from downstream substance retailing businesses slumped to conscionable Rs 10.03 crore from Rs 17,7555.95 crore successful July-September 2023.

Revenue from operations dropped to Rs 1.95 lakh crore successful the July-September from Rs 2.02 lakh crore a twelvemonth backmost arsenic planetary lipid prices softened.

Later successful a statement, IOC said it sold 21.931 cardinal tonnes of petroleum products during the 2nd 4th arsenic compared to 21.941 cardinal tonnes a twelvemonth backmost and 24.063 cardinal tonnes successful the April-June period.

Its refineries processed 16.738 cardinal tonnes of crude oil, down from 17.772 cardinal tonnes successful July-September 2023 and 18.168 cardinal tonnes successful April-June 2024, it said.

The institution and different state-owned substance retailers -- Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) -- had past twelvemonth made bonzer gains from holding petrol and diesel prices contempt a driblet successful cost.

The terms frost was justified successful the sanction of recovering losses HPCL and the different 2 retailers had suffered successful the erstwhile twelvemonth erstwhile they did not rise retail prices contempt a surge successful cost.

The gains arising from the terms frost were eroded with petrol and diesel prices being chopped by Rs 2 per litre each conscionable earlier wide elections were announced. This unneurotic with a driblet successful merchandise cracks oregon margins connected comparatively unchangeable crude lipid prices led to a autumn successful profits.

Cracks -- the quality betwixt earthy worldly crude lipid and last merchandise terms -- person shrunk from the highs of 2022-23.