IOC 2024-25 Annual Report Analysis

Mon, 11 Aug

IOC has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

IOC Income Statement Analysis

• Operating income during the year fell 0.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 54.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.2% in FY25 as against 11.5% in FY24.
• Depreciation charges decreased by 3.7% and finance costs increased by 11.4% YoY, respectively.
• Other income grew by 29.2% YoY.
• Net profit for the year declined by 70.0% YoY.
• Net profit margins during the year declined from 6.4% in FY24 to 1.9% in FY25.

IOC Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	6,714,683	6,663,866	-0.8%
Other income	Rs m	38,429	49,638	29.2%
Total Revenues	Rs m	6,753,111	6,713,505	-0.6%
Gross profit	Rs m	771,917	349,787	-54.7%
Depreciation	Rs m	158,661	152,841	-3.7%
Interest	Rs m	78,806	87,760	11.4%
Profit before tax	Rs m	572,878	158,823	-72.3%
Tax	Rs m	141,266	29,208	-79.3%
Profit after tax	Rs m	431,612	129,616	-70.0%
Gross profit margin	%	11.5	5.2
Effective tax rate	%	24.7	18.4
Net profit margin	%	6.4	1.9

Essential Demand + Pricing Power = True Essential Stock

IOC Balance Sheet Analysis

• The company's current liabilities during FY25 down at Rs 2,193 billion as compared to Rs 2,271 billion in FY24, thereby witnessing an decrease of -3.5%.
• Long-term debt stood at Rs 515 billion as compared to Rs 468 billion during FY24, a growth of 10.1%.
• Current assets fell 13% and stood at Rs 1,459 billion, while fixed assets rose 4% and stood at Rs 3,475 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 4,936 billion as against Rs 5,025 billion during FY24, thereby witnessing a fall of 2%.

IOC Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	1,834,163	1,786,769	-2.6
Current Liabilities	Rs m	2,271,260	2,192,677	-3.5
Long-term Debt	Rs m	467,929	515,290	10.1
Total Liabilities	Rs m	5,025,419	4,936,149	-1.8
Current assets	Rs m	1,680,055	1,459,013	-13.2
Fixed Assets	Rs m	3,333,528	3,475,218	4.3
Total Assets	Rs m	5,025,419	4,936,149	-1.8

IOC Cash Flow Statement Analysis

• IOC's cash flow from operating activities (CFO) during FY25 stood at Rs 332 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -293 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -41 billion, an improvement of 90% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -2 billion from the Rs 3 billion net cash flows seen during FY24.

IOC Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	710,986	331,705	-53.3%
Cash Flow from Investing Activities	Rs m	-314,638	-292,613	-
Cash Flow from Financing Activities	Rs m	-393,846	-41,103	-
Net Cash Flow	Rs m	2,502	-2,011	-

Current Valuations for IOC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an decline from the EPS of Rs 31.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 140.6, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	487.6	483.9
TTM Earnings per share	Rs	31.3	9.4
Diluted earnings per share	Rs	30.6	9.2
Price to Cash Flow	x	4.0	7.2
TTM P/E ratio	x	5.7	16.5
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	1,883,674	2,043,011
Dividends per share (Unadj.)	Rs	12.0	3.0

Ratio Analysis for IOC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY25, from 0.7x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.8x during FY25, from 8.3x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 7.3% during FY25, from 23.5% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 10.7% during FY25, from 28.3% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 4.4% during FY25, from 10.2% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	0.7	0.7
Debtors’ Days	Days	1	1
Interest coverage	x	8.3	2.8
Debt to equity ratio	x	0.3	0.3
Return on assets	%	10.2	4.4
Return on equity	%	23.5	7.3
Return on capital employed	%	28.3	10.7

To see how IOC has performed over the last 5 years, please visit here.

IOC Share Price Performance

Over the last one year, IOC share price has moved down from Rs 169.1 to Rs 140.6, registering a loss of Rs 28.6 or around 16.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 26,029.2 (up 0.0%). Over the last one year it has moved down from 31,784.0 to 26,029.2, a loss of 5,755 points (down 18.1%).

Overall, the S&P BSE SENSEX is up 0.8% over the year.

(To know more, check out historical annual results for IOC and quarterly results for IOC)