IOC Q2 Results: Net Profit At Rs 12,967 Crore, Interim Dividend Of 50% Declared

Indian Oil Corporation Ltd., a state-run downstream refining company has reported a net profit of Rs 12,967 crore in Q2FY24, down almost 6% on a sequential basis but better than what analysts at Dalal Street had estimated. For the June quarter, the company reported a net profit of Rs 13,750 crore.

Following the announcement of the company's Q2 results, IOC shares gained 1.78% at Rs 89.83 per share at 2:55 pm IST. According to the results, the rise in the country's largest PSU oil refiner's Q2 FY24 net profit was driven by lower crude oil input costs and inventory gains.

Indian Oil Corporation's revenue from operations for the July-September quarter declined 11% to Rs 2,02,312.04 crore compared to Rs 2,21,145.42 crore in the same quarter last year. The state-run average gross refining margin (GRM) for the initial half of April-September 2023 stood at $13.12 per barrel against $25.49 per barrel in the year-ago period.

IOC posted a 3.8% quarter-on-quarter (Qoq) decline in EBITDA to Rs 21,313 crore for the July-September period, higher than analysts' expectations.
The PSU oil marketing company's margin increased by 70 basis points (bps) on a sequential basis to 11.9% for the September quarter.

The company's average Gross Refining Margin (GRM) for the period April- September 2023 is $13.12 per bbl (April- September 2022: $25.49 per bbl). The core GRM or the current price GRM for the period April- September 2023 after offsetting inventory loss/ gain comes to $12.60 per bbl.

IOC Interim Dividend:

Board has declared an Interim Dividend of 50% i.e. Rs. 5/- per equity share of face value of Rs.10 each for the year 2023-2024. The Board has fixed Friday, November 10, 2023, as the "record date" for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend. The Interim Dividend would be paid to eligible shareholders on or before November 30, 2023.