- 31 Jul 2023
- ICICI Securities
INDIAN OIL MARGINALLY LOWER GRMS (VS EST) NEGATED BY HIGHER MARKETING MARGINS
IOC - 140 Change: -2.65 (-1.85 %)News: IOC Q1FY24 net revenues de-grew 12% YoY to Rs 197527 crore, led by lower crude oil prices (sales volumes were down 1% to 24.4 MMT). GRMs came at US$8.3 per bbl vs Singapore GRMs at US$4.1, reflecting continued premium to SGRMs (albeit lowest in 6 quarters). However, record marketing margins led to EBITDA margins at Rs 22164 crore vs Rs 1356 crore YoY. PAT came at Rs 13750 crore vs loss of Rs 1993 crore in base.
Views: We expect gain in strength in Singapore GRMs from H2 onwards (as Chinese refineries improve their petroleum imports). Marketing margins continue to remain in the positive territory, although have lowered from the highs of | 11 per litre, as the crude has moved upwards. From a longer term, IOC continues to invest aggressively in newer green energy and energy transition projects to diversify from existing revenue stream of petroleum products.
impact: Neutral