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Informist, Thursday, Aug. 14, 2025

By Sunil Raghu

AHMEDABAD – Lower crude costs that saw a fall in operating expenses helped Indian Oil Corp Ltd. to report a sharp jump in its net profit for the June quarter. The public sector oil major's net profit more than doubled, rising 115.25% on year to INR 56.89 billion, in the June quarter. This was still lower than analysts' estimate of INR 77.93 billion. The company reported an on-year growth in net profit for second consecutive quarter, after clocking four consecutive quarters of decline.

The revenue for the quarter rose 1.2% on year to INR 2.186 trillion. The company's top line, net of excise duty, was at INR 1.93 trillion, down 0.14% on year and 1.02% from the trailing quarter.

IOC's domestic sales were at 24.97 million tonnes in the June quarter, up from 24.06 million tonnes a year ago. The export product sales of the country's biggest state owned oil marketing company in June quarter was at 1.36 million tonnes, compared with 1.19 million tonnes a year ago. The pipeline throughput for the quarter was at 26.26 million tonnes, as against 25.81 million tonnes a year ago. Refinery throughput for the quarter rose to 18.68 million tonnes from 18.17 million tonnes a year ago, the company said.

IOC's petrochemicals revenue declined 0.37% on year to INR 67.64 billion in June quarter, but petroleum products revenue increased 1.28% on year to INR 2.06 trillion. The company's natural gas revenue for June quarter, too, was up at INR 103.09 billion, from INR 102.38 billion a year ago.

The oil marketing company's operating margin improved 175 basis points on year to 4.01%, led by lower crude costs. IOC reported a 0.6% year-on-year decline in its total expenses for the quarter at INR 2.118 trillion, from INR 2.131 trillion.  More

The oil major's average gross refining margin for June quarter came in at $2.15 per barrel, a sharp 66.35% on-year fall from $6.39 per barrel a year ago. Gross refining margin reflects the difference between the cost of crude oil and the value of refined petroleum products. It is a key indicator of a refinery's operational efficiency and a key profitability metric for refiners. The analysts had expected IOC's gross refining margins to range between $6.5-$7.5 per barrel for the June quarter, compared with $7.9 per barrel in March quarter. However, high inventory costs in June quarter appears to hit company's margins. The core GRM, or the current price GRM, for June quarter, after offsetting inventory loss comes to $6.91 per barrel, the company said in notes accompanying its June quarter earnings filing to the stock exchanges.

For the June quarter, the inventory costs for IOC stood at INR 53.30 billion, up 645.8% on year from INR 7.15 billion a year ago. At the same time, the cost of raw materials consumed in June quarter fell 7.63% on year to INR 966.61 billion, from INR 1.05 trillion in June quarter last year. The company's employee cost went up to INR 29.24 billion, up 8.31% from INR 27 billion in June quarter a year ago. The finance costs were up 0.63% on year at INR 19.73 billion.

Thursday, shares of Indian Oil ended trade at INR 140.13 on the National Stock Exchange, down 1.6%.  End

US$1 = INR 87.55

Edited by Akul Nishant Akhoury

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