Indian Oil Corporation Limited (IOCL) reported in an interview with news agency, Moneycontrol on May 3 that inventory losses in the fourth quarter of the fiscal year 2023–24 caused a fall in net profit, compared to gains in the preceding three months.
The largest oil refiner in India said on April 30 that its consolidated net profit for the March quarter was Rs 5,488 crore, a 49% decrease from the same period last year. In the meantime, the business’s net profit fell by 40% in a row.
“It is to be noted that decrease in net profit is majorly due to inventory losses in Q4 vs inventory gains in Q3. The normalised GRM of Q4 is almost at the same level as that of Q3 i.e. around $10/bbl,” stated Indian Oil.
Additionally, Indian Oil mentioned in conversation with news agency, Moneycontrol that, during the March quarter, its gross refining margin (GRM) was $8.39 per barrel, roughly equal to that of the Q3 but 15% greater than Singapore’s GRM.
Due to inventory losses in some items, the oil marketing company recorded a decrease in EBITDA for the quarter.
“IOCL’s SA adj. EBITDA missed estimates by 27% at Rs107.5 billion in Q4FY24, due to weaker refining on the back of inventory losses (~USD2.0/bbl vs. nil est.), as well as core GRM coming in at USD10.6/bbl vs. USD13.0 (Emkay est.). Marketing segment posted steady performance, despite Rs10.2bn negative LPG buffer with seemingly better core marketing margin (inv. loss not known) partly offset by higher opex,” mentioned Emkay in a note, dated April 4.
