Indian Oil Corporation Ltd (IOCL) posted a consolidated net loss of ₹169.58 crore in Q2 FY25, a sharp contrast to its ₹13,114.3 crore net profit in the same period last year. This drop was largely attributed to a significant decrease in refining and marketing margins. Sequentially, net profit also declined from ₹3,528.5 crore in the previous quarter, reflecting the ongoing challenges in the oil refining industry.
Key Financial Highlights:
- Net Loss: ₹169.58 crore in Q2 FY25 compared to ₹13,114.3 crore profit in Q2 FY24.
- Revenue from Operations: ₹1.98 trillion, down 3.24% YoY.
- Expenses: Increased by 7.49% to ₹2.01 trillion, driven by higher material and stock-in-trade costs.
The average Gross Refining Margin (GRM) for IOCL was $4.08 per barrel in H1 FY25, a steep 68.9% drop from $13.12 per barrel in H1 FY24. Marketing margins also halved to ₹4.4 per litre in Q2, down from ₹8.7 per litre in the previous quarter, impacting overall profitability.
Operational Performance:
- Petroleum Product Sales: Domestic sales reached 2.93 million metric tonnes (MMT), with export sales at 1.03 MMT.
- Petrochemicals Revenue: Increased by 3% YoY to ₹6,813.3 crore.
- Other Business Activities: Saw a 12% revenue growth to ₹10,236 crore.
The sharp reduction in GRMs reflects industry-wide challenges, as global refining margins have normalized after reaching record highs in 2022 due to supply disruptions. IOCL, with 10 refineries contributing to 33% of India’s refining capacity, remains a critical player in the market, though the current environment continues to weigh on earnings.
