IOC's Earnings Plunge Amid Inventory Losses

Indian Oil Corporation reports a 98.6% drop in second-quarter earnings due to significant inventory losses. Profits fell to Rs 180 crore from Rs 12,967 crore a year earlier. Operating performance remains strong despite refinery challenges and under-recovery on LPG impacting financials. Refining margins also contributed to the profit gap.

Indian Oil Corporation (IOC) has reported a staggering 98.6% decline in its second-quarter earnings, primarily attributed to substantial inventory losses, according to a top company official on Tuesday.

The company's standalone net profit plummeted to Rs 180.01 crore in the second quarter of the 2024-25 fiscal year, a stark drop from Rs 12,967.32 crore in the same period last year, as stated in a filing to the stock exchange. The profit also saw a sequential decline from Rs 2,643.18 crore reported in the April-June period.

IOC Director (Finance) Anuj Jain highlighted that the company faced over Rs 4,200 crore of inventory loss in the July-September quarter, compared to an inventory gain of around Rs 8,300 crore in the previous year. Additionally, IOC reported an under-recovery on LPG amounting to Rs 8,870.11 crore by September 30.

(With inputs from agencies.)