IOC Shares Gain 3% Amidst Negative Trading In Broader Market, Here's Why

Shares of Indian Oil Corporation gained 2.81% at Rs 92.23 per share at 10:44 am IST on Wednesday, a day after the state-run oil refiner declared an interim dividend of 50% i.e. Rs. 5 per equity share of the face value of Rs.10 each in its second quarter results announced on Tuesday.

IOC shares closed 1.64% higher at Rs 89.71 per share on Tuesday after the company reported better-than-expected net profit of Rs 12,967 crore in Q2FY24, down almost 6% on a sequential basis but higher than what analysts at Dalal Street had estimated.

The company has fixed November 10, 2023, as the "record date" for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend. The Interim Dividend is expected to be paid to eligible shareholders on or before November 30, 2023.

In an exchange filing on Tuesday, the company said, "The 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. It may also be noted that pursuant to Regulation 42 of SEBI (LODR), the Board has fixed Friday, 10th November 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 30th November 2023."

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 expanded by 70 basis points (bps) on a sequential basis to 11.9% for the September quarter.