IOC's Epic Q3: Record Fuel Sales Yet Profit Tumbles 64%

Indian Oil Corporation reported a 64% drop in Q3 net profit due to inventory and foreign exchange losses, despite record fuel sales. The firm faced a significant inventory loss as crude prices fell. Notably, IOC achieved its highest quarterly sales at 26.134 million tonnes.

The Indian Oil Corporation (IOC), India's leading oil company, has experienced a staggering 64% decline in its net profit for the December quarter. Reported losses from inventory and foreign currency contributed to this dip, overshadowing the company's record-high fuel sales during the same period.

For the third quarter of FY2025, IOC's standalone net profit amounted to Rs 2,873.53 crore, a steep fall from Rs 8,063.69 crore in the previous year's equivalent timeframe as per its stock exchange filing. However, profits showed improvement when compared quarter-on-quarter with Rs 189.01 crore from July-September 2024. IOC Director of Finance, Anuj Jain, attributed these losses to inventory and foreign exchange fluctuations and reduced product cracks.

Despite the profit dip, Chairman A S Sahney highlighted IOC's achievement of the highest quarterly sale at 26.134 million tonnes, recording a 6.2% rise over last year and an impressive 13.8% quarterly growth. Yet, falling oil prices led to revenue declines from Rs 2.23 lakh crore to Rs 2.16 lakh crore in Q3. Sahney remains committed to the company's core oil refining and marketing strengths, coupled with ongoing investment in renewable energy.

(With inputs from agencies.)