State-owned Indian Oil Company Ltd (IOC) on Monday reported an enormous 98.6 per cent drop in web revenue within the September quarter, as refinery margins fell and advertising and marketing margins shrunk.
The corporate posted a standalone web revenue of Rs 180.01 crore within the July-September interval — the second quarter of the present 2024-25 fiscal yr — in contrast with a revenue of Rs 12,967.32 crore a yr again, in response to a inventory trade submitting by the corporate.
The revenue additionally declined sequentially, when in comparison with an incomes of Rs 2,643.18 crore within the April-June interval.
Whereas refinery margins fell, the corporate additionally booked under-recoveries on promoting home cooking fuel LPG at government-controlled price, which was decrease than the price.
For the six months ended September 30, IOC had an under-recovery on LPG of Rs 8,870.11 crore, the submitting confirmed.
It earned USD 4.08 on turning crude oil into fuels like petrol and diesel as in comparison with gross refining margin of USD 13.12 per barrel final yr.
Pre-tax earnings from downstream gas retailing companies slumped to only Rs 10.03 crore from Rs 17,7555.95 crore in July-September 2023.
Income from operations dropped to Rs 1.95 lakh crore within the July-September from Rs 2.02 lakh crore a yr again as worldwide oil costs softened.
Later in an announcement, IOC mentioned it bought 21.931 million tonnes of petroleum merchandise through the second quarter as in comparison with 21.941 million tonnes a yr again and 24.063 million tonnes within the April-June interval.
Its refineries processed 16.738 million tonnes of crude oil, down from 17.772 million tonnes in July-September 2023 and 18.168 million tonnes in April-June 2024, it mentioned.
The corporate and different state-owned gas retailers — Hindustan Petroleum Company (HPCL) and Bharat Petroleum Company Ltd (BPCL) — had final yr made extraordinary features from holding petrol and diesel costs regardless of a drop in price.
The value freeze was justified within the identify of recovering losses HPCL and the opposite two retailers had suffered within the earlier yr when they didn’t increase retail costs regardless of a surge in price.
The features arising from the worth freeze had been eroded with petrol and diesel costs being reduce by Rs 2 per litre every simply earlier than basic elections had been introduced. This along with a drop in product cracks or margins on comparatively secure crude oil costs led to a fall in income.
Cracks — the distinction between uncooked materials crude oil and ultimate product value — have shrunk from the highs of 2022-23.
