Indian Oil Corporation posts highest revenue of any Indian company and record FY22 profit: The Tribune India


New Delhi, May 17

Indian Oil Corporation (IOC), the country’s largest oil company, on Tuesday reported a 31.4% drop in net profit in the fourth quarter as record refining margins were wiped out by margin compression in petrochemicals and losses on automotive fuel sales.

Standalone net profit of Rs 6,021.88 crore, or Rs 6.56 per share, in January-March, compared to Rs 8,781.30 crore, or Rs 9.56 per share, during the same period there is a year, the company said in a stock filing.

Sequentially, the profit was above Rs 5,860.80 crore in the prior quarter.

For the fiscal year April 2021 to March 2022, IOC recorded the highest revenue ever recorded by an Indian company at Rs 7.28 lakh crore or USD 96 billion (stand alone). Consolidated revenue, after including profits from subsidiaries like CPCL, stood at Rs 7.36 lakh crore.

Reliance Industries Ltd had earlier this month announced revenues of Rs 7.92 lakh crore for fiscal year 22. This amount was allegedly the highest ever recorded by an Indian company, but it included GST, which the company collected on behalf of the government on the sale of products and which it was obliged to transfer to the government.

IOC revenue does not contain the GST element.

“IOC recorded the highest operating revenue ever for any company in FY22,” said the company’s chief financial officer, Sandeep Gupta.

For the full financial year 2021-22 (April 2021 to March 2022), the IOC recorded the highest ever net profit of Rs 24,184.10 crore, compared to Rs 21,836.04 crore last year .

“This is the highest profit ever made by the IOC,” he said.

For FY22, Reliance had reported a net profit of Rs 60,705 crore.

According to the stock exchange filing, IOC made record margins on crude-to-fuel, but they were erased by weaker naphtha cracks as well as losses on gasoline, diesel and gasoline sales. domestic LPG.

IOC earned $18.54 per barrel of crude oil into fuel between January and March, compared to $10.59 per barrel of gross refining margin a year ago. After excluding inventory gains resulting from the processing of crude oil purchased at lower prices, base GRM in the fourth quarter of FY2021-22 was $13.52 per barrel versus $2.51 a year before.

But those gains were made through fuel marketing losses. IOC and other public sector oil companies held gasoline and diesel prices down for a record time despite the cost of raw materials (crude oil) soaring to a 14-year high. They only started raising prices on March 22.

And even after the 10 rupees per liter increase in petrol and diesel prices between March 22 and April 6, they continue to suffer losses as international crude oil prices rose above $100 a barrel.

The same goes for LPG cooking gas where prices rose by Rs 50 per cylinder on March 22, which was not enough to cover the gap between the cost of production and the selling price.

Another increase of Rs 50 per cylinder occurred on May 7, but the gap continues.

Pre-tax profit from the sale of petroleum products fell 8% to 8,251.29 crore rupees, while that of the petrochemical business fell 72% to 570.18 crore rupees, according to the filing.

With the surge in oil prices, operating revenue reached Rs 2.06 lakh crore in the last quarter of this fiscal year ending March 31, from Rs 1.63 lakh crore a year ago.

The company’s board has recommended the issuance of free shares at a ratio of 1:2 – one new free share of Rs 10 each for two existing shares.

It also declared a final dividend of Rs 3.60 per share (before bonus), which translates to a final dividend of Rs 2.40 per share after bonus for the financial year 2021-22.

The final dividend is in addition to the interim dividend of Rs 9.00 per share (pre-bonus) paid earlier.

Reflecting on the company’s outstanding operational performance, CIO Chairman SM Vaidya said, “This year, IndianOil recorded the highest ever operating revenue as well as the highest net profit ever.”

“This outstanding achievement reflects our determination to set new benchmarks of excellence even in the face of difficult challenges. It also validates our sustained focus on fueling the socio-economic aspirations of the new India,” he said.

He said IOC sold 86.407 million tonnes of product, including exports, in the 2021-22 financial year. “Our refining throughput for the 2021-22 fiscal year was 67.665 million tonnes and the company’s National Pipeline System throughput was 83.248 million tonnes during the year.”

Refining gross margin (MRB) for fiscal year 2021-22 was $11.25 per barrel, compared to $5.64 per barrel in the prior fiscal year. The base GRM or current price GRM for the year 2021-22 after offsetting inventory gains was $7.61 per barrel.

For the fourth quarter of fiscal year 2021-22, IOC’s product sales volumes, including exports, were 23.310 million tonnes. Refining throughput was 18.265 million tonnes and the Company’s National Pipeline System throughput was 22.061 million tonnes during the quarter.

Luisa D. Fuller