Indian Oil Corporation (IOC) on Tuesday reported a 31.4 percent drop in net profit in its fourth quarter due to tighter margins in petrochemicals and losses on auto fuel sales.
Stand-alone 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, in the same period a year ago, the company said in a scholarship application.
Consecutively, the profit was higher than Rs 5,860.80 crore in the previous quarter.
With oil prices soaring, revenues from operations rose to 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 IOC and other public sector oil companies held on to petrol and diesel prices for a record time, despite a rise in raw material costs (crude oil). It wasn’t until March 22 that they started raising prices.
Pre-tax profit from the sale of petroleum products fell 8 percent to Rs 8,251.29 crore, while the same result from the petrochemicals business fell 72 percent to Rs 570.18 crore.
The company’s board of directors recommended the issuance of bonus shares in the ratio of 1:2 – one new bonus share of Rs 10 each for every two existing shares.
It also announced a final dividend of Rs 3.60 per share share (pre-bonus), which translates into a final dividend of Rs 2.40 per share after bonus for the 2021-22 fiscal year.
The final dividend is in addition to the previously paid interim dividend of Rs 9.00 per share (pre-bonus).
For the full fiscal year (April 2021 to March 2022), the company posted a record net profit of Rs 30,443.93 crore, up 15 percent from the previous fiscal year.
The increase was the result of an increase in refining margins. The company earned $11.22 in converting each barrel of crude oil to fuel in the fiscal year, compared to a gross refining margin of $5.64 in the prior year.
The core GRM or current price GRM for the year 2021-22, after offsetting inventory gains, was $7.61 a barrel, it said.