State-run Indian Oil Corporation (IoCL) on Monday reported a consolidated net loss of around ₹449 crore in Q2 FY25, on account of inventory losses as well as muted refining and marketing margins.

The CPSU had reported a consolidated net profit of around ₹3,723 crore in Q1FY25 and ₹13,713 crore in Q2FY24.

However, the country’s largest oil marketing company (OMC) posted a standalone net profit of ₹180 crore in Q2 FY25, a 93 per cent decline quarter-on-quarter (q-o-q) and almost 99 per cent on an annual basis.

On a standalone basis, its net profit during H1 FY25 stood at ₹2,823 crore compared to ₹26,718 crore in Q2 FY24 mainly on inventory losses, reduced refining margins affected by lower cracks in line with the international trends and suppressed marketing margins during the current period, the company said.

IoCL’s average Gross Refining Margins (GRM) for April-September 2024 stood at $4.08 per barrel (April-September 2023: $13.12 per barrel). The core GRM or the current price GRM for April-September 2024 after offsetting inventory loss/ gain comes to $2.97 per barrel.

The OMC sold 48.213 million tonnes (MT) of products, including exports, during April–September 2024.

“Our refining throughput was 34.906 MT and the throughput of the corporation’s countrywide pipelines network was 48.213 MT during the period,” IoCL said.

For Q2 FY25, Indian Oil’s product sales volumes, including exports, was 22.961 MT. The refining throughput was 16.738 MT and the throughput of the corporation’s countrywide pipelines network was 23.985 MT during the second quarter in the current financial year.

In its results filing on BSE, IoCL said the Ministry of Petroleum & Natural Gas (MoPNG) had conveyed to OMCs that where Market Determined Price (MDP) of LPG cylinders is less than its Effective Cost to Customer (ECC), the OMCs will retain the difference in a separate buffer account for future adjustment.

“However, as on September 30, 2024, the company had a cumulative net negative buffer of ₹8,870.11 crore as the retail selling price was less than MDP and accordingly, revenue to this extent has not been recognized,” it added.