News

Published: May 17, 2023
Updated: May 17, 2023

Indian Oil Corp Reports Strong Profit Growth, Ends Five Quarters of Decline

Indian Oil Corporation Ltd (IOCL) has announced its financial results for the fourth quarter of FY23, revealing a significant surge in consolidated net profit. The company's profit rose by 52% year-on-year, marking the first increase in five quarters. This positive performance can be attributed to easing crude prices and improved refining margins, which have propelled IOCL's shares to their highest level in over a year.

IOCL's Impressive Q4 Performance:

IOCL witnessed a notable upswing in its consolidated net profit, reaching Rs 10,841.23 crore in Q4FY23. This represents a substantial growth of 52% compared to the net profit of Rs 7,089.18 crore reported in the same quarter the previous year. The favourable market conditions, including reduced crude prices, played a pivotal role in boosting the company's refining margins.

Revenue and Standalone Profit Figures:

In addition to its remarkable profit growth, IOCL experienced a 10% surge in revenue from operations during the reviewed period. The company's revenue reached Rs 2,30,711.56 crore, compared to Rs 2,09,045.44 crore in the corresponding quarter of FY22. On a standalone basis, IOCL achieved a 67% year-on-year increase in net profit, amounting to Rs 10,058.69 crore in Q4FY23. This signifies substantial growth from the net profit of Rs 6,021.88 crore reported in the same quarter the previous year.

Strong Quarterly Performance:

IOCL's consolidated profit witnessed an impressive 1117% surge on a quarterly basis. The net profit in Q4FY23 stood at Rs 10,841.23 crore, as compared to Rs 890.23 crore in the third quarter of FY23. Similarly, the company's standalone net profit soared by 2,145% quarter-on-quarter, reaching Rs 10,058.69 crore from Rs 448 crore in the previous quarter.

Revenue Growth and Final Dividend Recommendation:

IOCL's revenue from operations displayed a robust growth of 9.70% in the fourth quarter of fiscal year 2023. The company's revenue amounted to Rs 2,26,492.05 crore, surpassing the figure of Rs 2,06,457.17 crore reported in Q4FY22. Considering the strong financial performance, IOCL's board has recommended a final dividend of 30% for the year 2022-23. This translates to Rs 3 per equity share of face value of Rs 10 each, subject to approval at the annual general meeting (AGM).

Indian Oil Corporation Ltd has successfully reversed its five-quarter streak of declining profits, reporting a remarkable 52% increase in consolidated net profit for Q4FY23. The positive outcome can be attributed to favourable market conditions and improved refining margins. IOCL's strong financial performance has prompted the recommendation of a substantial final dividend, highlighting the company's commitment to rewarding its shareholders.