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IndianOil Q3 profit plunges 77% to ₹2,147 crore on forex, inventory losses

IndianOil Q3 profit plunges 77% to ₹2,147 crore on forex, inventory losses


Despite clocking highest ever sales, state-run Indian Oil Corporation (IoCL) on Monday reported a 77 per cent Y-o-Y decline in consolidated net profit at around ₹2,147 crore in Q3 FY25 largely due to foreign exchange and inventory losses. In Q2 FY25, it posted a net loss of around ₹449 crore.

The country’s largest oil marketing company (OMC), which operates more than 37,000 fuel stations, clocked refined product sales of 26.13 million tonnes (mt) in Q3 FY25 compared to 22.96 mt and 24.62 mt in Q2 FY25 and Q3 FY24, respectively.

IoCL’s consolidated total income stood at around ₹2.21 lakh crore compared to ₹1.99 lakh crore in Q2 FY25 and ₹2.28 lakh crore in Q3 FY24.

Challenging quarter

“Despite a challenging quarter, IoCL clocked highest ever POL sales. A huge achievement. Q-o-Q we achieved sales growth of 13.8 per cent and 6.2 per cent Y-o-Y. Petrochemicals, we registered growth of 7 per cent Y-o-Y in 9M FY25. Natural gas sales in 9M FY25 rose 24 per cent Y-o-Y,” IoCL Chairman A S Sahney said.

IoCL’s market share also appreciated, pointed out Sahney adding that the OMC grew more than the market. “In PSU OMCs, our share rose from 42.4 per cent in Q2 FY25 to 46.7 per cent in Q3. Industry wise, it grew from 41.1 per cent to 41.3 per cent.”

Refinery performance has been “very commendable” Q-o-Q. Fuel and loss came down to 8.9 per cent from 9.1 per cent. Distillate yield went up from 79.9 per cent to 81.9 per cent, IoCL Chairman noted.

IoCL’s refining throughput stood at 18.110 mt in Q3 FY25, which grew by 8 per cent Q-o-Q, and the throughput of the corporation’s countrywide pipelines network is 24.904 mt, a 4 per cent Q-o-Q growth.

Margin squeeze

IoCL’s profits declined due to inventory losses and fall in international product crack prices, which impacted core gross refinery margins (GRMs), Director (Finance) Anuj Jain explained.

The OMCs average gross refining margin (GRM) during 9M FY25 was $3.69 per barrel compared to $13.26 in 9M FY24. Core GRM, after inventory loss, stood at $4.22 per barrel in 9M FY25. In Q2 FY25, its core GRM stood at $2.95 a barrel compared to $13.53 a year-ago.

Globally, the decline in product crack prices impacted IoCL’s GRMs. Cracks is the pricing difference between a barrel of crude oil and the petroleum products refined from it.

Diesel crack prices fell to $10.8 a barrel in Q3 2024 from $19.18 in Q3 2023, while gasoline (petrol) cracks declined to $3.63 a barrel from $7.04 per barrel, Jain said.

IoCL also reported around ₹7,800 crore of inventory loss delta in Q3 FY25 as well as about ₹1,900 crore of foreign exchange delta loss. In terms of LPG sales, IoCL said that as on December 31, 2024, it had a cumulative net-negative buffer of ₹14,325 crore.





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