Indian Oil Q1 Review – Strong GRM Steals The Show: Motilal Oswal


BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Indian Oil Corporation Ltd. reported an Ebitda of Rs 13.6 billion (down 88% YoY) ahead of our estimates of negative Rs 8.4 billion. The beat was mainly driven by robust reported gross refining margin at $31.8/barrel of oil (versus our estimate of $25.8/bbl) with core GRM being at $25.3/bbl.

In the refining segment, Indian Oil’s throughput came in at 18.9 million metric tonne (up 13% YoY) that was broadly in line with our estimate (of 18 mmt) with an all-time high GRM of $31.8/bbl.

High GRM is primarily led by high Singapore GRM, which was at an all-time high of ~$21/bbl in Q1 FY23 (long-term average of $2-4/ bbl).

In the marketing segment, both domestic sales volumes and export volumes remained strong, which were up 23% and 6% YoY to 21.3 mmt and 1.7 mmt, respectively. However, oil marketing companies are estimated to have generated losses of Rs 8.8/Rs 12.4 per liter on petrol/diesel, respectively, in Q1 FY23.

Click on the attachment to read the full report:


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.


Source link

What is your reaction?

In Love
Not Sure

You may also like

Comments are closed.

More in:Business