Due to a margin squeeze in petrochemicals and losses on auto fuel sales, Indian Oil Corporation (IOC) announced a 31.4 percent reduction in fourth-quarter net profit on Tuesday.
In January-March, the company reported a standalone net profit of Rs 6,021.88 crore, or Rs 6.56 per share, compared to Rs 8,781.30 crore, or Rs 9.56 per share, in the same period a year ago, according to a stock exchange filing. The profit was higher sequentially than the previous quarter's Rs 5,860.80 crore.
Revenue from operations increased to Rs 2.06 lakh crore in the final quarter of this fiscal year ended March 31 from Rs 1.63 lakh crore the previous year, thanks to rising oil prices.
Despite a rise in the cost of raw materials, IOC and other public sector oil companies kept petrol and diesel prices stable for an unprecedented period (crude oil). They only began hiking prices on March 22. Pre-tax profits from the sale of petroleum products declined 8% to Rs 8,251.29 crore, while profits from the petrochemicals sector fell 72% to Rs 570.18 crore.
The company's board of directors recommended that bonus shares be issued at a 1:2 ratio, with one new bonus equity share of Rs 10 for every two existing equity shares. For the financial year 2021-22, it also declared a final dividend of Rs 3.60 per equity share (pre-bonus), which translates to Rs 2.40 per equity share post-bonus.