How Did Indian Oil Achieve a 50% Surge in Q4 Net Profit?
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Synopsis
Discover how Indian Oil Corporation achieved a remarkable 50% surge in net profit for Q4 2024-25, driven by enhanced margins and operational efficiency. With a commitment to clean energy and a promising dividend proposal, this news highlights the company’s growth trajectory and robust financial health.
Key Takeaways
- Net profit of Rs 7,264.85 crore for Q4 2024-25.
- 50% increase year-on-year compared to previous year.
- Significant growth driven by improved refining margins.
- EBITDA margin improved to 7%.
- Proposed dividend of Rs 3 per equity share.
New Delhi, April 30 (NationPress) The state-owned Indian Oil Corporation announced an impressive net profit of Rs 7,264.85 crore for the January-March quarter of 2024-25, marking a significant 50% year-on-year increase compared to Rs 4,837.69 crore during the same period last year.
On a quarter-on-quarter basis, the oil major's net profit more than doubled to Rs 7,265 crore, up from Rs 2,874 crore in Q3FY25. This remarkable growth was driven by enhanced refining margins, inventory gains, and improved operational efficiency.
The Indian Oil Board has proposed a final dividend of Rs 3 for each equity share with a face value of Rs 10 for the fiscal year 2024-25.
The company's Gross Refining Margins (GRMs), which reflect the difference between the total value of petroleum products produced and the cost of raw materials, reached $8 per barrel. This is a significant increase from $2.9 per barrel reported in the previous quarter.
For this quarter, the EBITDA (earnings before interest, tax, depreciation, and amortisation) margin was recorded at 7%, an improvement from the 3.7% margin in Q3, showcasing better cost control and an improved product mix.
Sequentially, EBITDA rose nearly 90%, climbing from Rs 7,117 crore in the previous quarter to Rs 13,572 crore, indicating a strong boost in operating profitability.
Revenue from operations remained steady at Rs 1.95 lakh crore, slightly up from Rs 1.94 lakh crore in the last quarter.
This quarterly achievement aligns with IOCL’s ongoing commitment to expanding both refining capabilities and clean energy initiatives.
Earlier today, the company revealed an additional equity investment of Rs 1,086 crore in its wholly owned subsidiary, Terra Clean Ltd., aimed at establishing 4.3 GW of new renewable energy capacity.
Following the announcement of these results, shares of Indian Oil Corporation initially surged but later settled at a 1.1% increase, trading at Rs 137.31. The stock has appreciated approximately 5.5% over the past month.
Point of View
Indian Oil Corporation's financial results underscore the importance of strategic operations and adaptability in the energy sector. As the company continues to invest in both traditional refining and renewable energy, it demonstrates a balanced approach that aligns with national energy goals. This dual focus ensures that Indian Oil remains a key player in the market while contributing to sustainable development.
NationPress
01/05/2025
Frequently Asked Questions
What was Indian Oil's net profit for Q4 2024-25?
Indian Oil reported a net profit of Rs 7,264.85 crore for the January-March quarter of 2024-25.
What is the percentage increase in net profit compared to last year?
The net profit represents a 50% year-on-year increase compared to Rs 4,837.69 crore last year.
What factors contributed to the profit increase?
The increase was attributed to improved refining margins, inventory gains, and operational efficiencies.
What is the proposed dividend for the financial year?
The Board has recommended a final dividend of Rs 3 per equity share.
What are the Gross Refining Margins for this quarter?
The Gross Refining Margins stood at $8 per barrel, up from $2.9 per barrel in the previous quarter.
