IndianOil’s Q3 profits more than quadruple amidst favourable oil prices

State-owned refiner IndianOil’s profit in the December-end quarter accelerated more than four times on a year-over-year (YoY) basis fuelled by a favourable lower crude oil price regime.

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The refiner’s net profit, on a standalone basis, increased more than 321% to ₹12,125.86 crore from the comparable period last year. IndianOil’s gross refining margin, which is the primary indicator of profitability for a refiner, in the ongoing financial year until the end of December, more than doubled from the comparable period last year to $8.41 for every barrel.

IndianOil’s standalone revenue also accelerated 6.62% on a year-over-year basis to ₹2.32 lakh crore in the December-end quarter.

The Delhi-headquartered refiner’s physical performance also witnessed an uptick in the December-end quarter. Domestic sales increased approximately 5% on a year-over-year basis in the third quarter to 26.015 million metric tonnes (MMT).

Refinery throughput, indicator for output from a refinery, also spurred about 7.3% to 19.427 MMT.

IndianOil also informed that its throughput for the nine-month period, that is until the end of December since the start of the financial year, increased 5% on a year-over-year basis to 55.719 MMT – with a capacity utilisation of 105%.

Earlier in January, IndianOil’s peers in the refining space, Hindustan Petroleum and Bharat Petroleum too had reported 57.7% and 62% increase in their profits during the same period.