IOC GRM at US$12/bbl in Q3FY22IOC - 67 Change: 1.05 (1.59 %)
News: IOC’s topline increased 16.1% QoQ to Rs.197172 crore in Q3FY22 while marketing sales were at 21 MMT, up 11% QoQ. Crude throughput increased 13.9% QoQ to 17.4 MMT and GRM was US$ 12/bbl supported by inventory gain of US$ 3/bbl. EBITDA stood at Rs.9862.1 crore, down 7.2% QoQ leading to Reported PAT at Rs.5860.8 crore, down 7.8% QoQ
Views: IOC results were marginally lower than our estimates on profitability front mainly on account of marketing segment while refining profitability was better than expected. Marketing profitability was impacted due to impact of excise duty cut as per our understanding. With recovery in product cracks, GRMs sustaining at higher level will be the key. Stability in GRMs at higher level and passing on higher retail prices of Petrol & Diesel to customers (due to higher crude oil costs) will be important for IOC's performance in the near term.