Indian Oil Q4 Results Review - Strong Gross Refining Margin; Rising Marketing Margins: Dolat Capital
Core GRM strong but capacity addition most likely post FY25.
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Dolat Capital Report
Indian Oil Corporation Ltd.'s gross profit was up 3% YoY and 56% QoQ to Rs 276 billion. Sequential growth was due to-
auto fuel margins of Rs 6.2/litre (versus Rs 1.8/litre in Q3);
a rise in gross refining margin with the support of 23% mix of Russian disc. crude;
refinery throughput was up 5%; and
sharp improvement in petrochemical margins and volume.
Ebitda was up 32% YoY and 327% QoQ to Rs 153 billion which was 29% above consensus. Profit after tax was up 67% YoY and 2,145% QoQ to Rs 101 billion, much ahead of consensus.
Total debt has been reduced by 9% QoQ. The company announced a dividend of Rs 3/share (implies 3% yield).
IOCL trades at ~0.8 timesof FY25 price/book value available at a cheaper valuation and offering a dividend yield of 6%/7% in FY24/FY25.
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