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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.
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