Indian Oil surpasses estimates with 67% spike in Q4 net profit at Rs 10,059 crore

Average gross refining margin (GRM) for the year April- March 2023 was $19.52 per barrel

Indian Oil Corp Ltd on May 16 reported 67 percent year-on-year jump in standalone net profit to Rs 10,059 crore for the quarter ended March 2023. Net profit stood at Rs 6,021 crore in the year-ago period.

The state-owned oil marketing company‘s revenue from operations jumped almost 10 percent YoY to Rs 2.26 lakh crore. The numbers have managed to beat CNBC-TV18 estimates of bottom line at Rs 6,393 crore and top line at Rs 1.88 lakh crore.

Average gross refining margin (GRM) for April- March 2023 was $19.52 per barrel, compared to $11.25 per barrel in April- March 2022, said the company. However, the suppressed marketing margins of certain petroleum products offset the benefit of increase in GRM.

Indian Oil has been suffering under recoveries from sale of domestic LPG since FY22. To compensate for this, the Union government approved a one-time grant of Rs 10,801 crore and Indian Oil has recorded this under revenue from operations in FY23.

The company’s board of directors have recommended a final dividend of ~Rs 3 per equity share for FY23, subject to approval by the members of the company.

At 2:30 pm, Indian Oil shares were quoting at Rs 87 on the NSE, higher by 3.7 percent from previous close.