Indian Oil Corporation (IOC), the nation's largest oil firm, on Tuesday, reported a 31.4 percent year-on-year (YoY) decline in net profit at Rs 6,021.88 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter last year, the company posted a net profit of Rs 8,781 crore. CNBC-TV18 Polls had predicted a profit of Rs 8,083 crore for the quarter under review.

Sequentially, the profit was higher than Rs 5,860.80 crore in the previous quarter. With oil prices surging, revenue from operations rose to Rs 2.06 lakh crore in the final quarter of this fiscal year ending March 31 from Rs 1.63 lakh crore a year back.

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IOC and other public sector oil companies held petrol and diesel prices for a record duration despite a surge in the cost of raw materials (crude oil). They started raising prices only on March 22. Pre-tax earnings from the sale of petroleum products fell 8 percent to Rs 8,251.29 crore while the same from the petrochemicals business was down 72 percent to Rs 570.18 crore.

The Board has recommended a final dividend of Rs 3.60 per equity share having a face value of Rs 10 each (pre-bonus), which translates into a final dividend of Rs 2.40 per equity share having a face value of Rs 10/- each (post-bonus) for the financial year 2021-22, subject to the approval of the shareholders of the company.

The final dividend is in addition to the Interim Dividend(s) of Rs 9.00 per share (pre-bonus) paid for the financial year 2021-22. Also, the board has recommended the issue of Bonus Shares in the ratio of 1:2 i.e. One new bonus equity share of Rs 10 each for every two existing equity shares of Rs 10 each fully paid up.

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For the full fiscal (April 2021 to March 2022), the company posted a record Rs 30,443.93 crore net profit, an increase of 15 percent over the previous financial year.

The surge came on the back of a rise in refining margins. The firm earned $11.22 on turning every barrel of crude oil into fuel in the fiscal as compared to a gross refining margin of $5.64 in the previous year. The core GRM or the current price GRM for the year 2021-22 after offsetting inventory gains came to $7.61 per barrel, it said.

The results came after the close of the market hours. Shares of Indian Oil Corporation ended at Rs 124.40, up by Rs 2.30, or 1.88 percent on the BSE.

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First Published:May 17, 2022 5:36 PM IST