IOC's Q1 Net Profit Falls 81% Due to Low Refining Margins
OIL & GAS

IOC's Q1 Net Profit Falls 81% Due to Low Refining Margins

Indian Oil Corporation (IOC) has reported a significant 81% decline in its net profit for the first quarter of the fiscal year, largely due to reduced refining margins and substantial fuel under-recoveries. The company's net profit dropped to Rs.1,487 crore fromRs.7,795 crore in the same quarter of the previous year.

The sharp decrease is attributed to the ongoing pressures on refining margins, which have been adversely impacted by fluctuating global crude oil prices and increasing operational costs. Additionally, IOC has faced challenges related to fuel under-recoveries, where the sale prices of petroleum products have not kept pace with the rising costs of crude oil and other inputs.

Despite these challenges, IOC continues to focus on strategic measures to stabilise its financial performance. The company is actively working on optimising its refining operations and exploring avenues to mitigate the effects of volatile global oil markets. Furthermore, IOC is investing in infrastructure and technological advancements to enhance its operational efficiency and reduce costs.

The company's performance in the upcoming quarters will be closely watched as it navigates these challenges. Analysts expect that a recovery in refining margins and a stabilisation of global oil prices could positively impact IOC's profitability in the future.

IOC remains committed to its long-term growth strategies, including expansion of its refining capacity and diversification into renewable energy sectors, aiming to strengthen its market position and financial resilience amidst the current economic conditions.

Indian Oil Corporation (IOC) has reported a significant 81% decline in its net profit for the first quarter of the fiscal year, largely due to reduced refining margins and substantial fuel under-recoveries. The company's net profit dropped to Rs.1,487 crore fromRs.7,795 crore in the same quarter of the previous year. The sharp decrease is attributed to the ongoing pressures on refining margins, which have been adversely impacted by fluctuating global crude oil prices and increasing operational costs. Additionally, IOC has faced challenges related to fuel under-recoveries, where the sale prices of petroleum products have not kept pace with the rising costs of crude oil and other inputs. Despite these challenges, IOC continues to focus on strategic measures to stabilise its financial performance. The company is actively working on optimising its refining operations and exploring avenues to mitigate the effects of volatile global oil markets. Furthermore, IOC is investing in infrastructure and technological advancements to enhance its operational efficiency and reduce costs. The company's performance in the upcoming quarters will be closely watched as it navigates these challenges. Analysts expect that a recovery in refining margins and a stabilisation of global oil prices could positively impact IOC's profitability in the future. IOC remains committed to its long-term growth strategies, including expansion of its refining capacity and diversification into renewable energy sectors, aiming to strengthen its market position and financial resilience amidst the current economic conditions.

Next Story
Infrastructure Transport

Astrophel Aerospace Raises Rs 6.84 Cr to Develop Reusable Rocket Engine

Astrophel Aerospace, a Pune-based deep-tech space startup, has raised INR 6.84 Crore (USD 800,000) in a pre-seed funding round led by a consortium of angel investors and venture firms. The funds will be used to develop a reusable semi-cryogenic launch vehicle and scale the company's R&D to create missile-grade guidance systems and components. Astrophel Aerospace aims to have a working prototype ready for testing within 24 to 36 months.This funding comes at a pivotal moment, with India’s space sector poised for growth due to the Gaganyaan mission, Axiom-4, and the upcoming Space Activitie..

Next Story
Infrastructure Energy

Cooper Corp and Sinfonia Launch India’s First CPCB IV+ Certified LPG Genset

The partnership culminates in the launch of the ‘Daimon Genset,’ India’s first CPCB IV+ certified 10 kVA LPG genset. This groundbreaking product sets a new benchmark in efficient and sustainable power generation and will be exclusively manufactured by Cooper Corporation. It will be marketed both in India and internationally, marking a major step towards technological progress, energy efficiency, and environmental responsibility.The model CSG-0010L-IN genset, branded ‘DAIMON’ in India, is named after the town where Sinfonia Technology is headquartered. In Japan, the product will be so..

Next Story
Infrastructure Energy

Coal India, SCCL, and Heartfulness Join Forces for Responsible Mine Restoration

Coal India, Singareni Collieries Company (SCCL), and Heartfulness have entered into a transformative partnership through the signing of two Memorandums of Understanding (MoUs), as announced by the Ministry of Coal and Mines (Government of India). The MoUs were officially signed at Kanha Shanti Vanam, Heartfulness headquarters, in the outskirts of Hyderabad. The event was graced by Shri G. Kishan Reddy, Union Minister of Coal and Mines, and Shri Satish Chandra Dubey, Minister of State for Coal and Mines, along with senior officials from all the parties involved.The primary goal of these MoUs is..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?