Indian Oil Corporation (IOC) will release its second quarter earnings today, with analysts pointing to steady earnings despite expected pressures from asset losses and weak refining margins.
The standalone revenue is expected to decline by 6% quarter-on-quarter (QoQ) to Rs 1,82,087 crore from Rs 1,93,236 crore in the previous quarter, according to Zee Business research. Indian Oil Corporation is expected to report a 47 percent rise in its quarterly profit, with marketing estimates supporting earnings despite weak refining performance.
Excluding the revenue reduction, IOC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to rise 13 percent to Rs 9,724 crore, supported by a strong margin of 5.3 percent, compared to 4.5 in the previous quarter, according to a survey by Zee Business.
Analysts expect the oil marketer’s net profit to jump 47 per cent QoQ to Rs 3,890 crore from Rs 2,643 crore, primarily driven by stable margins for auto fuel sales.
Gross refining margins (GRMs), a key performance indicator for IOC, are seen at $2.9 per barrel on a consolidated basis, with reported GRMs likely to be $5 per barrel. However, the loss of assets and the decline in the performance of the LPG business are expected to moderate the overall results.
The domestic LPG segment is expected to decline sharply to Rs 3,200 crore amid the impact of regulated prices, which contributes to the expected decline in refining margins.
This earnings release follows IOC’s Q1 FY25 results, where the company reported a consolidated profit of Rs 3,722.63 crore, down 75 percent year-on-year, mainly due to GRM weakness. Q1 FY25 revenue also fell by nearly 3 percent year-on-year, underscoring the challenge of refining the environment.
IOC Shares Values
As of 1:01 PM on October 25, shares of Indian Oil Corporation were trading at Rs 147.15, down 3.98 percent from the previous close. The stock saw an intraday high of Rs 153.9 and a low of Rs 145.55. In the broader market, the Sensex was also in the red, trading at Rs 79,325.72, down 0.92 percent. IOC trading rates on NSE and BSE were significantly higher, up by 42.67 percent compared to the previous session.