Chairman's Msg

Positive Energy and Business Overview

  • IndianOil Integrated Annual Report 2023-24

  • Revenue: 8,66,345 Crore

  • Net Profit: 39,619 Crore

Message to Shareholders

  • 2023-24 characterized by extraordinary achievements driven by progress and sustainability.

  • Thanks to stakeholders for their unwavering support.

  • Commitment to high standards of corporate governance.

Historical Context

  • Remarked on India’s journey post-independence, highlighting oil's importance as described by Pandit Nehru in 1956.

  • IndianOil's establishment aimed at ensuring national progress and energy self-sufficiency.

Company Growth and Contributions

  • Significant growth over six decades as one of India’s largest customer-facing firms.

  • Enhanced operational capacity aligned with national initiatives like 'Atmanirbhar Bharat' and 'PMUY'.

Sustainability Achievements

  • IndianOil recognized globally for sustainable development in the Bloomberg NEF Energy Transition Score and S&P Dow Jones Sustainability Indices.

  • Daily operations include:

    • Processing over 1.6 million barrels of crude oil.

    • Serving 3 crore Indians through an extensive network of 61,000+ customer touchpoints.

    • Delivering more than 26 lakh LPG cylinders and refueling over 2,300 flights daily.

Energy Demand and Future Outlook

  • India’s oil demand projected to grow from 5.4 million bpd in 2023 to 9.3 million bpd by 2040.

  • Increasing refining capacity target from 256.8 MMTPA to 450 MMTPA required.

  • Planning to add 50 GW of renewable energy capacity annually, aiming for 500 GW by 2030.

Financial Milestones

  • IndianOil achieved record-breaking revenue and profit:

    • Revenue: 8,66,345 Crore

    • Net Profit: 39,619 Crore, highest ever in Company’s history.

    • Operational metrics included sales volume of 97.551 Million Tonnes and pipelines throughput of 98.626 Million Tonnes.

Challenges and Resilience

  • Achievements come amid geopolitical turbulence and natural disasters, showcasing IOCians’ dedication.

  • Efforts during cyclones and floods ensured uninterrupted fuel supply, showcasing a commitment to resilience.

Building Trust and Shareholder Value

  • Significant rise in share prices, reflecting confidence in the Company; market capitalization reached 2.72 Lakh Crore.

  • Proposal to distribute 42% of Profit After Tax (16,526 Crore) as dividends, maintaining a low debt-equity ratio of 0.66.

Recognition and Awards

  • Ranked 94th in Fortune Global 500, the sole Indian PSU in the top 100 for 28 consecutive years.

  • Top of 'BW Top 500' and recognized for brand strength in the oil and gas sector.

Operational Excellence

  • Achievments include a Gross Refining Margin of US$12.05 per barrel and high production rates for petrol.

  • Expansion projects include increasing the capacity at Barauni, Panipat, and Gujarat Refineries.

  • New RLNG infrastructure projects enhance operational capacity at Barauni and Paradip Refineries.

Pipelines Expansion

  • Extensive pipeline network growth, with new LPG pipeline projects underway, exemplifying the commitment to energy distribution.

Petrochemical and Marketing Strategies

  • Strengthened petrochemical capacity through expansion projects scheduled through to 2025-26.

  • Expansion of marketing services via new fuel stations, bringing total to 37,697 including LPG networks.

  • Implemented customer safety initiatives resulting in a marked decrease in domestic accidents by 50%.

Innovative Initiatives and Future Technologies

  • Leading in hydrogen mobility projects, including partnership agreements for hydrogen fuel cell buses.

  • Initiatives in biofuels and ethanol production aim to align with national energy targets and sustainability practices.

  • Launching of EV charging stations and battery-swapping services to support electric vehicle growth in India.

Green Initiatives

  • Commitment to environmental sustainability through CYCLOPLAST and Unbottled eco-friendly products.

  • Focus on watershed management and biodiversity conservation, including successful coral translocation and species protection projects.

Future Vision and Goals

  • Aspiring to become a One Trillion Dollar Company by 2047, aligning with India’s projected economic growth.

  • Target of becoming operationally Net-Zero by 2046 to align with national objectives.

  • Strategic goals to contribute 12.5% of India's energy needs by 2050, expanding into renewable and advanced energy sectors.

Conclusion

  • Reinforcing IndianOil's commitment to be 'The Energy of India', aiming towards a sustainable and professional corporate culture.