The country's largest petroleum company Indian Oil Corporation Limited is facing a very bad situation in the second quarter. In the second quarter of the current financial year, profits have declined by 99 percent. According to the data, in the second quarter of the current financial year, the net profit declined by a huge 98.6 percent to Rs 180.01 crore. There was a big decline in the company's profits due to decrease in refinery margin and marketing margin. Let us also tell you what kind of figures were seen in the quarterly results of the petroleum company.
IOC on Monday informed the stock market about its financial results for the July-September 2024 quarter. In the same quarter a year ago, the public sector petroleum marketing company had made a profit of Rs 12,967.32 crore. IOC has made a net profit of Rs 180.01 crore on standalone basis in the September quarter of the current financial year, which shows a big decline compared to the profit of Rs 2,643.18 crore in the April-June quarter. In fact, along with the decline in IOC's refinery margins, it has also suffered huge losses due to the sale of domestic cooking gas (LPG) at a price below its cost. Due to this there has been a decline in its net profit. Along with this, IOC suffered a loss of Rs 8,870.11 crore on the sale of LPG in the first half of the current financial year.
The company earned US $ 4.08 on converting crude oil into fuels like petrol and diesel, compared to US $ 13.12 per barrel gross refining margin in the same period last year. IOC's pre-tax income from fuel retail business declined to just Rs 10.03 crore from Rs 17,7555.95 crore in July-September 2023. Due to softening international oil prices, the company's operating revenue declined to Rs 1.95 lakh crore in the last quarter from Rs 2.02 lakh crore in the same period last year.
Apart from IOC, other public fuel retailers - Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) - also made huge profits last year by keeping the prices of petrol and diesel stable despite the fall in costs. However, this year, just before the announcement of general elections, petrol and diesel prices were cut by Rs 2 per liter each, the benefits of keeping the prices stable were lost.
