Indian Oil Corporation Reports Sharp 81% Drop in Q1 Net Profit

Indian Oil Corporation (IOC) reported an 81% decline in its net profit for the June quarter, attributed to falling refinery and marketing margins and under-recovery on domestic cooking gas LPG sales. The company's standalone net profit fell to Rs 2,643.18 crore, down from Rs 13,750.44 crore a year earlier.

Indian Oil Corporation (IOC), the nation's largest oil firm, on Tuesday reported a significant 81% decrease in net profit for the June quarter, marking a drop due to declining refinery and marketing margins alongside under-recovery on domestic cooking gas LPG sales at government-regulated prices.

IOC's standalone net profit for the April-June period of the current fiscal year plummeted to Rs 2,643.18 crore, a stark contrast to the Rs 13,750.44 crore recorded in the same period last year, as detailed in its stock exchange filing.

Further exacerbating the company's financial woes, sequential net profit also dwindled compared to the Rs 11,570.82 crore earned in the January-March quarter. Despite earnings of USD 6.39 per barrel in crude oil refining, pre-tax earnings from downstream fuel retailing saw a steep 77% drop, amounting to Rs 4,299.96 crore.