Indian Oil Corporation, the country's largest oil marketing company, reported a 2.8-fold surge in its net profit to Rs 36,802 crore for the last financial year, compared to Rs 12,962 crore a year earlier. The rise was partly driven by inventory gains, the company said on Monday.
Quarterly Performance
During the January-March quarter, IndianOil's net profit jumped over 1.5 times to Rs 11,378 crore, while revenue from operations was barely 7% higher at over Rs 2.3 lakh crore. Petroleum sales rose 5% to 89 million metric tonnes.
Dividend Announcement
Despite incurring losses on every litre of petrol and diesel sold currently, the board recommended a final dividend of Rs 1.25 for each equity share with a face value of Rs 10. The central government, being the largest shareholder, will be the biggest beneficiary.
For most of the last financial year, the oil retailer was making profits on every litre of petrol and diesel sold at fuel pumps, which helped strengthen its bottom line.
Joint Venture for Sustainable Aviation Fuel
The board also approved the formation of a 50:50 joint venture between M11 Energy Transition and IndianOil to set up a 100 KTPA HEFA-based sustainable aviation fuel project in Paradip. The estimated project cost is Rs 1,064 crore.
