The Indian Oil Corporation (IOC), one of the largest companies in the Indian oil and gas sector, holds a significant position in fueling the nation’s economy. The recent release of its financial results for the second quarter of 2023 has drawn attention from various markets.
These quarterly reports are more than just numbers; they show the company’s financial conditions and position in the face of market forces. These quarterly results are extremely important for investors, as they provide an insight into the company’s position in the market and let them decide whether to invest more in it or not.
IOC Q2 Revenue and Net profit
|Financial Metric||Amount (₹ Crore)|
|Revenue from Operations||2,28,359|
|EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)||15,306|
|Interim Dividend (%)||50%|
In Q2 2023, the revenue increased to a huge amount of ₹2.34 trillion, a 76% jump from the same quarter in the previous year. The revenue in Q2 2022 was reported as ₹1,69,764 crores. The total revenues from operations of this quarter decreased by 11.9% to ₹2.02 lakh crore as compared to the ₹2.28 lakh crore of the same quarter of the previous year.
The net profit of Indian Oil Corporation (IOC) for the second quarter of 2023 has been reported as ₹12,967. This represents a significant reversal from a loss of ₹272 crore in the same quarter of the previous year. Net profit is the residual income left after all expenses, including operational costs, interest, taxes, and depreciation, have been deducted.
It’s the clean profit that could potentially be distributed to shareholders or reinvested back into the company. This variance in figures underscores the need for a more detailed examination to verify the accurate net profit figure.
Indian Oil Corporation EBITDA
EBITDA is a widely used indicator to measure a company’s financial performance. It provides a clearer picture of a company’s operational efficiency by excluding non-operating expenses like interest, taxes, depreciation, and amortization. For IOC, the EBITDA for Q2 2023 stood at ₹15,306 crore, showcasing a margin expansion. The total expenses for Indian Oil Corporation Limited during the financial year 2023 totalled approximately ₹9.4 trillion.
Dividend Record and Payment Date
Indian Oil Corporation announced an interim dividend of 50% for the fiscal year 2023-2024, translating to ₹5 per equity share of face value ₹10 each. This interim dividend declaration is a gesture of sharing the corporation’s profits with its shareholders.
For the 50% interim dividend declared by IOC, November 10, 2023, has been announced as the record date, with the payment being processed to eligible shareholders on or before November 30, 2023.
Stock Market Reaction
After the announcement of the Q2 results, IOC shares witnessed a 1.78% gain, priced at Rs 89.83 per share, showcasing investors’ positive reaction. The pre-tax earnings from the sale of petroleum products increased to Rs 17,755.95 crore in the second quarter of the current fiscal year.
In the detailed profit and loss accounts, there’s a line item mentioned as “Excpt. Items & Tax” with amounts 20,239.83 and 14,411.20, although it’s unclear from the sentence whether these figures refer to Q2 2023 or another period.