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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