Indian Oil Corporation Faces Major Earnings Slump Amidst Refinery Challenges

Indian Oil Corporation Ltd reported a staggering 98.6% drop in net profit for the September quarter due to reduced refinery margins and a squeeze on marketing margins. The company faced under-recoveries on LPG sales and a decrease in revenue amidst falling international oil prices.

State-owned Indian Oil Corporation Ltd (IOC) has reported a dramatic fall in net profit for the September quarter, witnessing a 98.6% slump as a result of shrinking refinery and marketing margins.

Standalone net profit plummeted to Rs 180.01 crore from Rs 12,967.32 crore in the same period the previous year. The earnings also saw a sequential decrease compared to Rs 2,643.18 crore in the April-June period of the current fiscal year.

Contributing to the decline were under-recoveries on domestic cooking gas LPG sales at government-controlled prices, and a notable drop in downstream retailing profits. The company's revenue decreased in line with softer international oil prices, while refinery throughput and product sales volume experienced reductions.

(With inputs from agencies.)