IOC's Stellar Quarter: Inventory Gains Propel Profit Growth

Indian Oil Corporation (IOC) reported a 50% increase in net profit for the March quarter, driven by inventory gains which offset losses from subsidised LPG sales. The quarter's profit rose to Rs 7,264.85 crore from Rs 4,837.69 crore a year ago, despite challenges in government subsidies.

Indian Oil Corporation (IOC) has announced a significant 50% jump in its net profit for the March quarter, largely attributed to inventory gains that managed to outweigh losses from the sale of subsidised domestic LPG.

In comparison to the previous year's Rs 4,837.69 crore, IOC's standalone net profit reached Rs 7,264.85 crore for January-March. This marks an improvement over the October-December 2024 quarter, where earnings stood at Rs 2,873.534 crore.

The earnings boost came as IOC capitalized on crude oil purchased at lower rates, which was then processed and sold at higher market prices, resulting in inventory gains. However, the company faced a Rs 5,601 crore loss on LPG sales due to lower refining margins, as revealed by IOC chairman A S Sahney in a post-earnings briefing.

(With inputs from agencies.)