Indian Oil Corporation Reports 64% Drop in Q3 Profit Due to Inventory and Forex Losses

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Posted by newadmin on 2025-01-27 17:30:42 |

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Indian Oil Corporation (IOC) reported a 64% decline in its net profit for the December quarter of FY25, primarily due to inventory and foreign exchange losses. The standalone net profit stood at ₹2,873.53 crore, down from ₹8,063.69 crore in the same period last year. However, profit showed significant improvement compared to ₹189.01 crore in the previous quarter (July-September 2024).

The decline in profit was attributed to a ₹7,800 crore inventory loss and ₹1,900 crore forex losses. Inventory losses occur when oil is bought at a particular price, but by the time it is processed, the prices fall. Product cracks— the difference between the cost of crude oil and the finished product—dropped significantly, with diesel cracks falling from $19.18 per barrel in Q3 FY24 to $10.8 per barrel in Q3 FY25. Similarly, petrol cracks decreased from $7.04 per barrel to $3.63 per barrel.

IOC’s refining margins also dropped, earning $2.95 per barrel, compared to $13.53 per barrel in the same quarter last year. Despite these challenges, the company reported its highest-ever quarterly sales of 26.134 million tonnes, reflecting a 6.2% growth over the previous year. Additionally, IOC gained market share, increasing from 46.4% in the PSU segment in Q2 FY25 to 46.7% in Q3 FY25, and from 41.1% to 41.3% in the overall industry.

Petrochemical volumes rose by 7%, and gas trading volumes jumped by 24% during the quarter.

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