Home Financial Record CIO Net Falls 31.4% in Q4; record profit in FY22

CIO Net Falls 31.4% in Q4; record profit in FY22

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Indian Oil Corporation (IOC) reported a 31.4% drop in fourth-quarter net profit on Tuesday due to squeezed petrochemical margins and losses in automotive fuel sales.

Standalone net profit of Rs 6,021.88 crore, or Rs 6.56 per share, in January-March, compared to Rs 8,781.30 crore, or Rs 9.56 per share, during the same period there is a year, the company said in a stock filing.

Sequentially, the profit was above Rs 5,860.80 crore in the prior quarter.
With the surge in oil prices, operating revenue reached Rs 2.06 lakh crore in the last quarter of this fiscal year ending March 31, from Rs 1.63 lakh crore a year ago.

IOC and other public sector oil companies held gasoline and diesel prices down for a record length of time despite soaring commodity prices (crude oil). They only started raising prices on March 22.

Pre-tax profit from the sale of petroleum products fell 8% to 8,251.29 crore rupees, while that of the petrochemical business fell 72% to 570.18 crore rupees.

The company’s board has recommended the issuance of free shares at a ratio of 1:2 – one new free share of Rs 10 each for two existing shares.

It also declared a final dividend of Rs 3.60 per share (before bonus), which translates to a final dividend of Rs 2.40 per share after bonus for the financial year 2021-22.

The final dividend is in addition to the interim dividend of Rs 9.00 per share (pre-bonus) paid earlier.
For the full financial year (April 2021 to March 2022), the company recorded a record net profit of Rs 30,443.93 crore, an increase of 15% from the previous financial year.

This surge was accompanied by an increase in refining margins. The company earned $11.22 from turning every barrel of crude oil into fuel during the year, compared to a refining gross margin of $5.64 the year before.

Baseline GRM or GRM at current price for the year 2021-22 after offsetting inventory gains was $7.61 per barrel, it said.