Indian Oil Corporation Faces Financial Challenges Amid Declining Profit Metrics

Indian Oil Corporation (IOC), a prominent player in the oil exploration and refinery sector, has recently undergone an evaluation adjustment that reflects a nuanced view of its financial standing. The adjustment in evaluation comes in light of the company's flat financial performance for the quarter ending March 2025. Key metrics indicate that while the operating profit to interest ratio reached a notable 6.90 times, and the profit before tax (PBT) less other income stood at Rs 8,526.14 crore, there are areas of concern.
The company's profit after tax (PAT) for the latest six months has shown a decline, registering at Rs 9,724.58 crore, which reflects a significant drop compared to previous periods. Additionally, the return on capital employed (ROCE) has been reported at a low of 7.08%, and the debtors turnover ratio is also at a lower level of 46.32 times.

Despite these challenges, IOC maintains a high dividend yield of 4.9% and has a substantial institutional holding of 36.94%, indicating a level of confidence among larger investors. The technical indicators suggest a mildly bearish trend, with various metrics reflecting a cautious outlook.

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