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Yes Securities Report
Indian Oil Corporation Ltd.'s Q3 FY23 reported Ebitda at Rs 35.9 billion (up 62% YoY; up 83% QoQ), missed our and street estimates, primarily on weaker than estimated reported gross refining margin at $12.9/barrel of oil. The adjusted (for inventory loss) core GRM as per our estimates stood at ~$17.4/bbl.
Correction in crude oil and product prices during the quarter, resulted in plausible inventory losses, weighing on reported GRMs. Retail marketing margins on petrol and diesel, however improved QoQ to Rs 10/litre (Q2: Rs (0.04)/litre) and Rs (5)- (6)/litre, (Q2: Rs (12)/litre), which in our assessment was offset partially by marketing inventory losses.
IOCL nine months operating profit nevertheless remains in black, despite the challenging operating environment. As we write, while petrol margins have moderated to Rs 5.5/litre the loss on retailing of diesel has also narrowed to Rs (3-4)/litre.
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