Indian Oil Q4 Results Review - Lower-Than-Expected Marketing Margin Lead To Miss: 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. .Motilal Oswal Report.Indian Oil Corporation Ltd. reported an Ebitda of Rs 143.5 billion (up 14% YoY), below our estimate of Rs 184 billion, led by weaker-than-expected marketing gross margin at Rs 3.3/litre. (versus our estimate of Rs 4.5/litre). In the refining segment, throughput came in line with our estimate at 19.1 million metric tonne (up 5% YoY). In the marketing segment, domestic sales volumes stood at 21.1 mmt (our estimate of 20.5 mmt versus 21.1 mmt in Q3 FY22). Marketing gross margin stood at Rs 3.3/litre in Q4 FY23. Oil marketing companies are estimated to be generating gross margins of Rs 9.1/Rs 11.6 on petrol/diesel in Q1 FY24- to-date. Singapore GRM of $8.2/barrel of oil in Q4 FY23 has now dropped to ~$3.4/bbl in Q1 FY24-to-date, which could hit refining margins in the coming quarter. Besides, IOCL has the highest leverage to refining segment and is expected to be impacted the most due to decline in GRMs.Petchem volumes declined 13% YoY to 0.68 mmt (0.37 mmt in Q3 FY23); while petchem margin expanded 5% YoY to $117/ million tonne ($319/mt in Q3 FY23). .Click on the attachment to read the full report:.Indian Oil Q4 Results: Profit Jumps On Higher Sales, Margin.DISCLAIMERThis 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."

Indian Oil Q4 Results Review - Lower-Than-Expected Marketing Margin Lead To Miss: Motilal Oswal

IOCL is likely to impacted the most among its peers from a decline in refining margin.

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Indian Oil Q4 Results Review - Lower-Than-Expected Marketing Margin Lead To Miss: Motilal Oswal

IOCL is likely to impacted the most among its peers from a decline in refining margin.

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