Indian Oil Corporation Performance
Fundamentals of Indian Oil Corporation
|P/E Ratio (TTM)||3.97|
|Debt to Equity||0.69|
Financials of Indian Oil Corporation
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||462.08||13,758.61||19,450.11||18,412.76|
|EPS in Rs||0.56||7.47||10.48||9.53|
About Indian Oil Corporation
History of Indian Oil Corporation (IOC)
Indian Oil Corporation Limited (IOC) is a ‘Maharatna’ company by the Government of India. It was formed in 1964 after the merger of Indian Oil Company Limited with Indian Refineries Limited. It is India’s largest integrated and diversified energy company, with its presence in the streams of oil, petrochemicals, gas, and alternative energy sources. The company’s operations include refineries, pipelines and marketing.
As of April 1, 2020, the Indian Oil Group had a refining capacity of 80.2 million metric tonnes per annum (MMTPA), constituting approximately 32% of the total national refining capacity of 248.9 MMTPA. Among the 23 refineries in India, the Indian Oil Group manages 9 of them. These refineries vary from the nation’s oldest one, operational since 1901 in Digboi with a capacity of 0.65 MMTPA, to the most recent addition at Paradip, with a capacity of 15 MMTPA, which was inaugurated in 2016.
IOC has more than 60,000 customer touchpoints and 36,445 fuel stations and is the promoter of the Indian Government’s SATAT (Sustainable Alternative Towards Affordable Transportation) scheme.
The business segments of IOC include:
- Refining – Under this segment, the company undertakes oil refining and marketing in India. It operates the most significant number of oil refineries in the country. The refineries are located in Digboi, Guwahati, Barauni, Gujarat, Haldia, Bongaigaon, Mathura, Panipat and Paradip.
- Pipeline – The company is considered a pioneer in oil pipelines in India. They oversee one of the largest oil pipeline networks in the world and accomplished a throughput of 76.019 million metric tonnes in the FY 2020-21.
- Marketing – This segment of IOC tries to reach out to their customers. They have 58,000 marketing touchpoints in Asia.
- Research and Development – This vertical in IOC focuses on creating environmentally friendly products and technologies that address critical national energy needs and promote self-reliance. Along with the research in the petroleum department, the company also works in areas like hydrogen, solar energy, etc.
- Natural Gas – Under this segment, the company markets and imports natural gas.
- Petrochemicals – The company has its presence in the petrochemical sector also. They have a separate Strategic Business Unit (SBU) to market petrochemicals.
- E&P – IOC is also involved in the Exploration and Production (E&P) activities both in and out of the country.
- City Gas Distribution (CGD) – The company is committed to offering clean and green energy solutions. The CGD segment aims to enhance their Natural Gas infrastructure in India.
- Explosives – The company also offers bulk explosives and blast-based services in India.
- Cryogenics – IOC also manufactures cryogenic containers in India. These containers are used to preserve embryos and stem cells, to store and transport liquefied gasses, etc.
The domestic subsidiary companies under IOC are,
- Chennai Petroleum Corporation Limited (CPCL) – This company was previously known as Madras Refineries Limited (MRL). CPCL is involved in refining petroleum products.
- IOC Global Capital Management IFSC Limited – This company offers financial services and is a wholly owned subsidiary of IOC.
Foreign subsidiaries include IndianOil (Mauritius) Limited, Lanka IOC PLC, Sri Lanka, IOC Middle East FZE, UAE, IOC Sweden AB, Sweden, IOCL (USA) Inc., USA, IndOil Global B.V. Netherlands, IOCL Singapore Pte Limited, Singapore.
There are over 25 Joint Ventures of IOC, including Avi-Oil India, Delhi Aviation Fuel Facility, Green Gas, etc.
Key Personnel of IOC
- Shrikant Madhav Vaidya, Chairman
Shrikant Madhav Vaidya heads Indian Oil Corporation. He was recognised as the top Indian CEO in March 2023 and ranked 81 worldwide in the Most Influential Global CEOs list by CEOWORLD Magazine. He has more than 36 years of experience in the petroleum industry and is an expert in refinery-petrochemical integration. He did his Chemical Engineering at the National Institute of Technology, Rourkela.
Bonus Shares: The company has declared bonus shares four times since 2009.
- A 1:2 bonus ratio was declared with a record date of July 1, 2022, and an ex-date of June 30, 2022.
- A 1:1 bonus ratio was declared with a record date of March 17, 2018, and an ex-date of March 15, 2018.
- A 1:1 bonus ratio was declared with a record date of October 19, 2016, and an ex-date of October 18, 2016.
- A 1:1 bonus ratio was declared with a record date of October 30, 2009, and an ex-date of October 29, 2009.
- The company has a strong brand name.
- The company possesses and manages several refineries in the country.
- The company’s market share is limited due to other energy players in the market.
- The company can increase its natural gas market.
- The company can acquire small players in the market and enjoy a bit more market share.
- The company can expand globally.
- The company is subject to government regulations.
- Environment-focused companies can act as barriers.
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What is the Share price of Indian Oil Corporation (IOC)?
Can I buy Indian Oil Corporation (IOC) shares?
How do I buy Indian Oil Corporation (IOC) from Angel One?
- Direct investment: You can buy Indian Oil Corporation (IOC) shares by opening a Demat account with Angel One.
- Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to Indian Oil Corporation (IOC) shares.
What is the total Asset of IOC?
The total asset of IOC is Rs. 410, 882 Crores.
What is the main business of IOC?
The main business of IOC, being India’s premier Maharatna national oil company, spans the entire hydrocarbon value chain, including refining, pipeline transportation and marketing, exploration and production of crude oil and gas, petrochemicals, gas marketing, alternative energy sources, and globalisation of downstream operations. It is an Indian government owned company with headquarters in New Delhi.
Who are the promoters of IOC?
The promoter of IOC is the President of India (51.50%).
What are the Subsidiaries that comes under IOC?
The subsidiaries that come under IOC are Chennai Petroleum Corporation Ltd, Lanka IOC PLC, Sri Lanka, IOC Middle East FZE, UAE, IOC Sweden AB, Sweden, IOCL (USA) Inc., USA, IndOil Global B.V. Netherlands, IOCL Singapore Pte. Ltd., and Indian Oil Mauritius Ltd.
Who is the owner of IOC?
As of July 2022, the government of India is the owner of IOC. The government of India holds a 51.5% stake in the company.
Is IOC a debt free company?
As of July 2022 quarter, IOC has a debt of ₹ 132,020 Cr.