homeearnings NewsIndian Oil Q3 Result: Petchem segment losses widen even as profitability returns

Indian Oil Q3 Result: Petchem segment losses widen even as profitability returns

India's largest refiner returned to profitability after losing over Rs 2,000 crore in the first two quarters of the year.

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By Sonal Bhutra  Jan 31, 2023 4:55:09 PM IST (Updated)

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Indian Oil Q3 Result: Petchem segment losses widen even as profitability returns
Indian Oil Corporation, India's largest oil refiner returned to profitability during the December quarter. However, the net profit figure of Rs 448 crore was well below a CNBC-TV18 poll expectation of Rs 3,226 crore.

The company had reported a net loss of Rs 272 crore in the September quarter, taking the overall loss in the first half of the financial year to over Rs 2,000 crore.
Net profit for the quarter was below estimates as losses in the petchem segment widened to Rs 616 crore from Rs 129 crore during the September quarter due to shutdown at the company's Panipat refinery, which led to a loss of volume.
Indian Oil's revenue of Rs 2.04 lakh crore during the quarter declined 1.4 percent sequentially, but was higher than the Rs 1.98 lakh crore.
Operating profit margin of 1.8 percent was also 200 basis points lower than the 3.8 percent figure estimated.
Reported Gross refining margin during the quarter stood at $12.7 per barrel, well below the $15 estimate. Refinery throughput and marketing sales were higher compared to the September quarter.
BPCL's management highlighted during its earnings call on Monday that the shutdown at Indian Oil's Panipat refinery helped them offtake higher volumes during the quarter, as a few bulk customers also shifted to retail.
Shares of Indian Oil Corporation ended off the day's high, up 0.2 percent at Rs 81.90.

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