Did Indian Oil Achieve a 50% Surge in Q4 Net Profit?
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Synopsis
Discover how Indian Oil Corporation has achieved a stunning 50% increase in net profit this quarter, driven by strategic improvements in operations and strong refining margins. This impressive financial performance reflects the company's commitment to growth and innovation in the energy sector.
Key Takeaways
- 50% increase in Q4 net profit year-on-year
- Net profit reached ₹7,265 crore
- Strong rebound driven by refining margins and operational efficiency
- Proposed final dividend of ₹3 per equity share
- Continued investment in renewable energy initiatives
New Delhi, April 30 (NationPress) The state-owned Indian Oil Corporation revealed a net profit of ₹7,264.85 crore for the January-March quarter of 2024-25, marking a remarkable 50% year-on-year increase compared to ₹4,837.69 crore from the same period last year.
The oil giant's net profit more than doubled on a quarter-on-quarter basis, reaching ₹7,265 crore, up from ₹2,874 crore in Q3FY25. This impressive rebound was bolstered by enhanced refining margins, inventory gains, and improved operational efficiencies.
Additionally, Indian Oil's Board has proposed a final dividend of ₹3 per equity share of face value ₹10 each for the fiscal year 2024-25.
The company's Gross Refining Margins (GRMs), which measure the difference between the total value of petroleum products produced and the cost of raw materials, stood at $8 per barrel, a significant increase from $2.9 per barrel in the preceding quarter.
For the quarter, the EBITDA (earnings before interest, tax, depreciation, and amortization) margin was 7%, an improvement from 3.7% recorded in the third quarter, reflecting better cost control and a favorable product mix.
EBITDA nearly doubled sequentially, climbing 90% quarter-on-quarter to ₹13,572 crore from ₹7,117 crore in the previous quarter, indicating a significant enhancement in operating profitability.
Revenue from operations remained stable at ₹1.95 lakh crore, slightly up from ₹1.94 lakh crore in the prior quarter.
This quarterly performance is a testament to IOCL's ongoing advancements in both refining and clean energy initiatives.
Earlier today, the company announced an additional equity investment of ₹1,086 crore in its wholly-owned subsidiary Terra Clean Ltd. to establish 4.3 GW of new renewable energy capacity.
Following the announcement, shares of Indian Oil Corporation initially surged but later stabilized, trading 1.1% higher at ₹137.31. The stock has seen an increase of approximately 5.5% over the last month.
Point of View
It is evident that strategic investments and operational efficiencies are paving the way for sustainable growth. This performance not only reflects the company's resilience but also its commitment to advancing the energy sector in India. Such achievements are vital for national energy security and economic stability.
NationPress
01/05/2025
Frequently Asked Questions
What was Indian Oil's net profit for Q4 2024-25?
Indian Oil Corporation reported a net profit of ₹7,264.85 crore for the January-March quarter of 2024-25.
How much did the profit increase compared to last year?
The profit increased by 50% compared to ₹4,837.69 crore in the same period last year.
What factors contributed to this profit growth?
The growth was supported by improved refining margins, inventory gains, and better operational efficiencies.
What is the proposed final dividend per share?
The Board has recommended a final dividend of ₹3 per equity share of face value ₹10 each.
What future investments are being made by Indian Oil?
Indian Oil announced an additional equity investment of ₹1,086 crore in Terra Clean Ltd. to set up 4.3 GW of new renewable energy capacity.
