Indian Oil posts big jump in net profit for September quarter

State-owned Indian Oil Corporation reported a net profit of ₹21,630 crore for the September quarter, more than double its earnings from the same period last year.

Performance Numbers

Revenue grew nearly 30% to reach over ₹2.62 lakh crore during the quarter. Domestic sales of petroleum products went up by about 5% to 23.98 million metric tonnes. Refinery throughput rose 2.8% to 18.1 million metric tonnes, while capacity utilisation touched 102.3%.

Margins and Caution

Gross refining margins, after taking out special additional excise duty, stood at $18.52 per barrel compared to $10.66 a barrel last year. The company linked the strong profit to lower crude oil prices between mid-June and mid-August, along with good margins in gas and petrochemicals. However, the firm warned that earnings in later quarters could face pressure from inventory losses if crude prices drop further due to changing conditions in the Middle East.

Context

State-run oil marketing companies in India buy crude oil and turn it into everyday fuels like petrol and diesel, meaning their quarterly financial results often swing based on global crude price movements. Changes in international oil markets directly alter how much profit refiners make on each barrel of oil they process.