Why Indian Oil Shares Are Falling Off A Cliff After Q4 Results

Shares of Indian Oil Corporation, that were trading flat on Tuesday, slumped down sharply after the company posted its earnings for the quarter ended March.

What Happened: The oil giant reported a standalone net profit of ₹4,837.69, down 52% from the ₹10,059 crore profit posted in the same quarter last year. Revenue from operations also moderated to ₹2.19 lakh crore, down around 3% from the ₹2.26 lakh crore posted in the same quarter last year.

The PSU also announced a ₹7 dividend per share for the year ending March 2024. On a sequential basis, the net profit fell by 40% from ₹8,063 crore posted in the preceding December quarter. Meanwhile, revenues dropped by a little over 1% quarter-on-quarter (QoQ).

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Indian Oil’s board has also approved the implementation of 1 gigawatt installed capacity of Renewable Energy projects, consisting of standalone ground-mounted solar or standalone onshore wind or wind-solar hybrid projects. This initiative will be carried out at an estimated cost of ₹5,215 crore in phases through its wholly-owned subsidiary.

On March 15, IOC had already approved the formation of a wholly-owned subsidiary dedicated to operating in the domain of low carbon, new, clean, and green energy businesses.

Price Action: IOCL’s share price was down 4.21% to trade at ₹169.30 in the late hours of trading on Tuesday.

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Posted In: EarningsEquitiesNewsMarketsMoversTrading IdeasIndian Oil Corporation