IOC net tanks 31% in Q4 but co ends FY22 with record profit

NEW DELHI: Long spells of fuel price freeze amid rising crude dragged down state-run IndianOil’s net profit by more than 31% to Rs 6,021.8 crore in the fourth quarter of 2021-22 from Rs 8,781.3 crore a year ago. But still, India’s largest oil refiner and fuel retailer closed the financial year with highest-ever profit of Rs 24,184 crore, 10% higher than Rs 21,836.04 crore posted in 2020-21.

Despite the under-recovery on petrol and diesel, the company on Tuesday reported standalone revenue of Rs 7.28 lakh crore — excluding GST (goods and services tax) on products that goes to the exchequer — during the fiscal, the highest for an Indian company. It pegged consolidated revenue, including those of subsidiaries, even higher at Rs 7.36 lakh crore.

Reliance Industries, billionaire Mukesh Ambani’s oil, petrochemicals, telecom and retail conglomerate, had last week reported a revenue of Rs 7.92 lakh crore in 2021-22. But this included GST on products and services that is to go to the government.

The company’s net profit for the fiscal stood at Rs 60,705 crore. IndianOil also posted record refining margin of $18.5 per barrel in the January-March quarter against $10.6 in the previous corresponding period on the back of high crude prices. But core GRM (gross refining margin) after excluding inventory gains stood at $13.5 a barrel, as opposed to $2.5 a year ago, due to lower margins on naphtha and under-recovery on petrol, diesel and domestic LPG (common household cooking gas) sales.

Indian Oil and other state-run fuel retailers had left pump prices unchanged for almost five months even after crude prices hit 14-year high. They raised prices by Rs 10 a litre in instalments after March 22 and has not revised retail rates since April 6. Pre-tax earnings from the sale of petroleum products fell 8% to Rs 8,251 crore, while the same from the petrochemicals business was down 72% to Rs 570 crore, the filing showed.