Indian Oil Corporation (IOC), the state-run oil refiner, has reported a remarkable increase in its standalone net profit for the fourth quarter of the fiscal year 2024-25. For the quarter ending March 31, 2025, IOC announced a standalone net profit of ₹7,264.85 crore, marking a staggering sequential growth of 152% from the preceding quarter's profit of ₹2,873.53 crore. This figure not only represents a significant leap but also exceeds the consensus estimate of ₹1,470 crore tracked by analysts.
The company's Gross Refining Margins (GRMs) for the quarter reached $8 per barrel, an impressive rise from the $2.9 per barrel reported in the previous quarter. Additionally, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) surged by 91% sequentially, climbing to ₹13,572 crore from ₹7,117 crore in the prior quarter. Consequently, the Ebitda margin expanded to 7% from 3.7%.
Revenue from operations for Q4FY25 was reported at ₹217,725.44 crore, reflecting a marginal increase of around 0.5% compared to ₹216,649.47 crore in the preceding quarter. In light of these impressive results, the board of directors has recommended a final dividend of ₹3 per equity share for the fiscal year 2024-25, representing a 30% dividend on the face value of ₹10 per share. This recommendation is subject to approval by shareholders at the upcoming Annual General Meeting (AGM).
The dividend is anticipated to be paid within 30 days from the date of declaration at the AGM, with the record date for the payment to be announced later. Following the announcement of these results, IOC's share price experienced an uptick, closing at ₹137.25 apiece on the Bombay Stock Exchange (BSE), marking a 1.08% increase.
In a similar vein, mining giant Vedanta Ltd. also posted impressive results for the fourth quarter, reporting a 154% year-on-year increase in consolidated net profit to ₹3,483 crore. Revenue from operations for Vedanta rose by 14% year-on-year to ₹40,455 crore, reflecting the company's robust performance in the mining sector.
Indian Oil's consolidated results were equally impressive, showcasing a 58% jump in consolidated net profit to ₹8,123.64 crore for Q4 FY25, compared to ₹5,148.87 crore during the same period last year. This fourth quarter consolidated net profit is nearly 300 times what was reported in the last quarter, where the company recorded a net profit of ₹2,115.29 crore due to lower refining margins and rising expenses.
Despite the remarkable profit growth, the consolidated revenue from operations for the quarter was ₹221,360.24 crore, which represents a slight decline of 1% year-on-year from ₹223,649.85 crore. The revenue, however, grew by 1% from ₹219,522.35 crore reported in Q3 FY25. Total consolidated expenses in Q4 FY25 decreased by 2% to ₹212,834.10 crore from ₹217,915.98 crore in Q4 FY24, and fell nearly 3% from ₹218,691.61 crore in the previous quarter.
For the entire financial year 2024-25, Indian Oil reported a consolidated net profit of ₹13,507.84 crore, which is a significant 68% drop compared to ₹41,729.69 crore reported at the end of FY24. Additionally, consolidated revenue from operations for FY25 fell marginally by 2% to ₹859,362.73 crore from ₹881,235.45 crore year-on-year.
The board's recommendation of a 30% final dividend of ₹3 per equity share for 2024-25 is contingent upon shareholder approval at the AGM, with payment expected within 30 days of declaration. The record date for the dividend payment will be communicated later.
In other corporate news, Sundram Fasteners reported a net profit decrease of 7% to ₹124.49 crore for the fourth quarter, down from ₹134.41 crore in the previous year. The company's revenue, however, rose by 4.4% to ₹1,530.59 crore compared to ₹1,466.48 crore year-on-year.
Meanwhile, Godrej Agrovet's net profit saw a marginal increase of 1% to ₹66.10 crore, while its revenue dipped by 0.5% to ₹2,133.64 crore. The company reported an EBITDA decrease of 7% to ₹146.68 crore.
As companies across sectors announce their quarterly results, the focus remains on the trends in revenue growth, profit margins, and dividend declarations. Investors are keenly watching these developments as they reflect the overall health of the economy and individual sectors.
With these results, Indian Oil Corporation and Vedanta continue to demonstrate resilience and strong performance in a challenging economic environment, setting a positive tone for investors and stakeholders alike.
