NEW DELHI: State-owned Indian Oil Corporation Ltd (IOC) on Monday reported a 98.6% fall in net profit in the September quarter, as refinery margins declined and marketing margins shrunk.
It reported a standalone net profit of Rs 180.01 crore Q2FY25 as against a profit of Rs 12,967.32 crore a year back, as per a stock exchange filing. The profit fell sequentially, when compared to an earning of Rs 2,643.18 crore in the April-June period.
While refinery margins fell, it also booked under-recoveries on selling domestic cooking gas LPG at government-controlled cost, which was lower than the cost. For the six months ended September 30, IOC had an under-recovery on LPG of Rs 8,870.11 crore. It earned $4.08 on turning crude oil into fuels like petrol and diesel as against gross refining margin of $13.12 per barrel last year.
Pre-tax earnings from downstream fuel retailing businesses fell to Rs 10.03 crore from Rs 17,7555.95 crore in July-September 2023. Revenue from operations dropped to Rs 1.95 lakh crore in the July-September from Rs 2.02 lakh crore a year back as international oil prices softened.
The company and other state-owned fuel retailers -- Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) -- had last year made extraordinary gains from holding petrol and diesel prices despite a drop in cost.