In the times of volatile crude oil prices and muted global demand: IndianOil’s Resilient Leadership Shines Through
Newsip Exclusive Interview with Anuj Jain, Director of Finance, IndianOil Corporation Limited*
Newsip: Mr. Jain, despite the significant decline in earnings, IndianOil’s operational performance remains robust. What are your thoughts on the company’s Q2 results?
Anuj Jain: “Yes, our Q2 results were impacted by lower refining margins and inventory losses. However, our operational performance has been decent, and we’ve maintained our domestic sales volumes. We’re focused on adapting to volatile global oil prices and leveraging our diversified portfolio.”
Newsip: Can you elaborate on the factors contributing to the decline in earnings for second quarter of FY 2024-25?
Anuj Jain: “The primary reasons are the drop in gross refining margins from USD 18.11 to USD 1.59 per barrel and inventory losses of over Rs 4,200 crore. These factors, combined with the negative buffer on LPG amounting to Rs. 8,870 crores, have impacted our profitability. Volatility in international crude oil prices and product cracks is not new to Refining Business. However, it is pertinent to mention that performance of IndianOil should not be compared on a quarter-to-quarter basis but on a long term yardstick, as these variables are cyclical in nature.”
Newsip: How does IndianOil plan to mitigate these challenges?
Anuj Jain: “We’re focusing on operational efficiency, cost optimization, and diversifying our revenue streams. Our refineries are undergoing upgrades to improve margins, and we’re exploring new business opportunities in the petrochemicals and renewable energy sectors.”
Newsip: What’s your outlook for the remainder of the fiscal year?
Anuj Jain: “We’re cautiously optimistic. While global oil prices remain volatile, we’re confident in our ability to adapt and navigate these challenges. Our strong operational foundation and diversified portfolio will help us drive growth.”
Newsip: How does IndianOil’s role as the backbone of India’s fuel supply system impact its business strategy?
Anuj Jain: “As the largest oil refining and marketing company, we prioritize maintaining stocks and supplies to meet the energy demand of the nation. This commitment to energy security plays a major role in our business decisions and investments. Oil sector is invariably impacted by volatility in international crude oil prices and product cracks. However, IndianOil’s leadership has always demonstrated its ability to tide over instabilities in the longer run.
Newsip: What message would you like to convey to IndianOil’s stakeholders?
Anuj Jain: “We’re committed to delivering sustainable growth, driving India’s energy landscape forward, and creating value for our stakeholders through vertical integration of business and diversification. Our resilience and adaptability will help us navigate these challenging times.”