IOC Q1 Profit Plunges 81%, LPG Subsidy Impacts Bottom Line

Indian Oil Corporation (IOC) reported an 81% drop in its June quarter net profit as refinery and marketing margins declined. The firm also faced an under-recovery on the sale of domestic cooking gas (LPG) at government-regulated prices. Despite nearly flat revenue, net profit saw a significant decline compared to the same period last year.

Indian Oil Corporation (IOC), the nation's largest oil firm, announced on Tuesday an 81% decline in net profit for the June quarter, attributed to falling refinery and marketing margins, along with under-recovery on LPG sales at government-controlled rates.

IOC's standalone net profit for the April-June period, the first quarter of the 2024-25 fiscal year, was reported at Rs 2,643.18 crore, a steep fall from Rs 13,750.44 crore recorded in the same period last year, as per the company's filing with the stock exchange.

The significant drop in net profit also mirrored sequential declines, falling from Rs 11,570.82 crore in the January-March quarter. The company's gross refining margin slumped to USD 6.39 per barrel from USD 8.34 per barrel last year, with pre-tax earnings from downstream fuel retailing plummeting 77% to Rs 4,299.96 crore.