New Delhi: There has been a huge decline in the profits of Indian Oil Corporation (IOC). It is almost finished in the second quarter ending September 2024. Last year, the company’s profit in this quarter was Rs 12,967 crore. This time it fell by 99% to just Rs 180 crore. The company’s income also saw a decline of 4% year-on-year. It decreased from Rs 2.02 lakh crore last year to Rs 1.95 lakh crore. IOC says that this huge decline in profits has occurred due to reduced demand for fuel during the monsoon season and fall in global crude oil prices. Indian Oil Corporation (IOC), one of India’s largest oil and gas companies. Is. It is the largest producer and distributor of petrol, diesel, LPG, petrochemicals and other oil products in the country.
Profit down 93% compared to June 2024 quarter
IOC reported EBITDA of Rs 3,773 crore in the July-September 2024 quarter. At the same time, EBITDA margin was 2.17%. The company’s profit has decreased by 93% compared to the previous quarter (June 2024). Whereas the income has declined by 10%. Total expenditure has also increased. It has increased to Rs 1.97 lakh crore as compared to Rs 1.86 lakh crore in the same period last year.
IOC’s gross refining margin (GRM) declined to $4.08 per barrel for the April-September 2024 period. At the same time, in the same period last year it was $ 13.12 per barrel. GRM measures the profit made from converting crude oil into fuels such as petrol and diesel.
Why was there such a sharp decline in profits?
India is the world’s third largest oil importer and consumer. Fuel demand usually sees a decline during the four-month monsoon season starting from June. During this period, traffic gets affected due to floods in various areas. This reduces the demand for fuel. There was a year-on-year decline in fuel consumption in India in August and September this year. In September it reached its lowest level in two years. Globally, crude oil prices have fallen by about 17% in the quarter ended September.
On a consolidated basis, IOC reported a net loss of Rs 449 crore in the second quarter. Whereas in the same quarter last year, there was a profit of Rs 13,713 crore. Shares of IOC closed 0.4% lower at Rs 145.74 on the NSE on Monday.