IOC Faces Plunge in Profits Amidst Squeezed Margins

Indian Oil Corporation Ltd reported a significant 98.6% decline in net profit for the September quarter, highlighting the impact of falling refinery margins and decreased marketing profits. The company also faced under-recoveries on domestic LPG sales. Revenue and pre-tax earnings from fuel retailing dropped sharply due to softened international oil prices.

Indian Oil Corporation Ltd, a state-owned entity, has reported a dramatic drop in net profit, with figures collapsing by 98.6% in the September quarter. This is primarily attributed to a decrease in refinery and marketing margins, according to a recent stock exchange filing.

During the quarter of July to September, IOC's net profit stood at a mere Rs 180.01 crore, as opposed to a whopping Rs 12,967.32 crore in the same period last year. This decline is also evident when compared to the Rs 2,643.18 crore earnings from the April-June period.

Additionally, international oil prices softened, reducing revenue from operations to Rs 1.95 lakh crore from Rs 2.02 lakh crore a year prior. The company's challenges were exacerbated by under-recoveries in selling LPG at government-controlled prices, totaling Rs 8,870.11 crore for the semi-annual period ending September 30.

(With inputs from agencies.)