IOC Q2 Earnings Highlights
Net Profit: ₹180 Cr vs ₹2,640 Cr (QoQ) | Estimate: ₹3,278 Cr
EBITDA: ₹3,773 Cr vs ₹8,634 Cr (QoQ) | Estimate: ₹11,120 Cr
EBITDA Margin: 1.93% vs 4% (QoQ) | Estimate: 6%
*Margins & Profits under pressure this quarter!
Indian Oil has given a rather dismal gift to its shareholders on Diwali. While other OMCs have posted reasonable profits, IOCL a giant Oil & Gas PSU has not lived up to its expectations.
Despite being in an enviable position in Refining & Distribution in India, it has let down its shareholders. Experts feel the leadership uncertainties are to be blamed. Most readers are aware that NewsIP has been constantly bringing the news of the sheer incompetence of selecting agencies to name a Chairman for the Company.
The same MoP&NG is quick to come to the rescue of private players and has not been able to put leaders in position in many Oil PSUs. The lack of a genuine leader has predictively led to the business downfall in Indian Oil.
This will only enable the champions of the privatisation of Oil & Gas to become more vocal that a behemoth like IOCL should be cut down to size. Piecemeal sale of assets are already in the pipeline. The monetization of best and most profitable assets have been undertaken.
There is a stringent cry by Private Sector Oil & Gas companies to share the assets of PSUs, and PNGRB is always there to justify it.
Will India see a major shift in the fortune of Companies like Indian Oil very soon which may go south financially so that they become sick and up for grabs? The public is gradually becoming a mute spectator while venerable companies created out of the Taxpayer’s money get killed, paving the way for private monopolies.
Has the end game started with the declining profits of Indian Oil?