Indian Oil Q4 net profit drops 31%; board recommends dividend, bonus shares

State-run refiner Indian Oil Corporation (IOC) reported a 31% decline on-year in net profit for the quarter ended March 2022. The leading petroleum company of the country registered a net profit of ₹6,021.88 crore, against ₹8,781.30 crore seen for the corresponding quarter last year.

As fuel prices increased, revenue from operations increased 26% to ₹2,06,460.89 crore during Q4 FY22, compared with ₹1,63,732.98 crore in the year-ago period. Total income soared to ₹2,07,412. 59 crore from ₹1,64,834.65 crore in Q4 FY21.

Amid skyrocketing crude oil prices, the refiner saw material cost rise to ₹90,401.52 crore during the March quarter, compared with only ₹55,099.13 crore in the same period last year.

For the full financial year 2021-22, IOC reported record profit at ₹24,184.10 crore, up 11% from ₹21,836.04 crore from the profit for FY21. Revenue from operations during the fiscal under review rose to ₹7,28,459.94 crore from ₹5,14,890.47 crore. Total income increased to ₹7,32,784.20 crore in FY22 from ₹5,19,441.19 crore in FY22.

“Average gross refining margin (GRM) for the year April- March 2022 is $11.25 per barrel (April- March 2021: $5.64 per barrel). The core GRM or the current price GRM for the year April - March 2022 after offsetting inventory loss/gain comes to $7.61 per bbl,” the refiner mentions in a regulatory filing.

The amount of outstanding loan to PMUY consumers as at March 31, 2022 is ₹2,770.67 crore, compared with ₹3,022.58 crore at the end of FY21. The provision for doubtful loans has also come down to ₹601.46 crore.

Additionally, considering the decline in subsidy amount of LPG cylinders in current year, IOC says it has remeasured the gross carrying amount of PMUY loan as at balance sheet date based on revised estimated future contractual cash flows resulting in reduction in PMUY loans by ₹489.00 crore, which has been charged to the statement of profit and loss.

The IOC board has recommended issue of bonus shares in the ratio of one new bonus equity share of ₹10 for every two existing equity shares of ₹10 held. The bonus issue is subject to the approval of shareholders through postal ballot. The board has fixed July 1, 2022 as record date to determine the eligibility of shareholders to receive bonus shares.

The board has also recommended a final dividend of ₹3.60 per equity share having face value of ₹10 each (pre-bonus), which translates into final dividend of ₹2.40 per equity share having face value of ₹10 each (post-bonus) for financial year 2021-22. The final dividend would be paid within 30 days from the date of declaration at the AGM. This final dividend is in addition to the interim dividend of ₹9 per share (pre-bonus) paid for the financial year 2021-22. The record date for payment of final dividend would be fixed and intimated in due course.