IOCL Q2FY23 dips into net loss of Rs-991 crore as additional duties and lower GRMs take its toll

29 Oct 2022 , 10:29 PM

Indian Oil Corporation reported 56.73% growth in total revenues for the September 2022 quarter on consolidated basis at Rs208,754 crore.

Revenue fell by -6.56% in sequential terms. For Q2FY23, the revenue from petroleum products surged yoy by 35.6% to Rs221,276 crore.

The petchem business fell by -23.9% yoy at Rs5,559 crore. The petroleum top line continued to be strong amidst elevated prices of crude in the quarte rand translation gains.

However, the operating profits of petroleum business fell by nearly 90% you.

This was due to imposition of special export duties on oil exporter from India as well as the impact of relatively GRMs. Current ratio for the quarter improved marginally to 0.86 times.

Consolidated picture for September 2022 quarter dipped into net loss of Rs-992 crore compared to net profit of Rs6,204 crore in the year ago quarter.

The spike in additional duties and the lower gross refining margins had an impact on the IOCL numbers. The fall in profits led to a sharp deterioration in the interest coverage ratios and the debt service ratios in the previous months.

While inventory turnover was flat, receivables turnover was higher yoy. Operating margins are sharply lower on consolidated basis. Net profit margins at -0.47% in Q2FY23 is sharply lower than 4.66%in the year ago quarter

Financial highlights for Sep-22 compared yoy and sequentially

	IOCL
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 2,08,754	₹ 1,33,195	56.73%	₹ 2,23,414	-6.56%
Net Profit (Rs cr)	₹ -992	₹ 6,204	N.A.	₹ -279	N.A.
Diluted EPS (Rs)	₹ -0.72	₹ 4.50		₹ -0.20
Net Margins	-0.47%	4.66%		-0.13%