Indian Oil Q4 Review - Retain Sell On Weak Result Post 100% Rally YoY: Nirmal Bang

Nirmal Bang Report

Indian Oil Corporation Ltd. Q4 FY24 standalone revenue at Rs 1,979.78 billion missed our estimate by 5.0% and beat street estimate by 3.3%. Profit after tax at Rs 48.37 billion was 46.5% below our estimate.

Gross margin at 13% missed our estimate by 81 bps. Contribution at Rs 257.56 billion was a miss of 10.5% versus our estimate.

Gross refining margins at $ 8.4/barrel of oil was a 17.3% miss versus our estimate. Refining throughput at 18.3 million tonnes was a 1.2% miss; Petroleum volume at 22.79 million tonnes was a 4% miss. MS sales volume was up 5.6% YoY while high speed diesel sales volume was down 4.8% YoY.

Ebitda margin at 5.3% was a miss of 243 basis points while Ebitda at Rs 104.98 billion was a miss of 34.8% versus our estimate due to higher employee costs and other expenses. Employee expenses/other expenses were higher than our estimate by 14.4%/21.7%.

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