Open ICICI
3-in-1 Account
Manage your Savings, Demat and Trading Account conveniently at one place
Manage your Savings, Demat and Trading Account conveniently at one place
News: IOC’s topline remained flat QoQ at Rs 226492.1 crore in line with I-direct estimate of Rs 225244 crore. Marketing sales for the quarter were at 23 MMT, flat QoQ (I-direct estimate: 23.3 MMT). IOC achieved crude throughput of 19.2 MMT in Q4FY23, up 5.4% QoQ, higher than I-direct estimate of 18.6 MMT. Reported GRMs came in at US$ 15.3/bbl, higher than I-direct estimate of US$10/bbl. The company’s overall marketing margins were in line with estimates as per our understanding. Subsequently, EBITDA came in at Rs 15340 crore, up 3.3x QoQ (on a weak base), higher than I-direct estimates of Rs 12707 crore. The company reported a PAT of Rs 10058.7 crore, higher than I-direct estimate of Rs 6345 crore.
Views: IOC's operating profit improved QoQ due to strong refining margins and improvement in marketing segment performance. In the current quarter, GRMs are likely to remain subdued but are expected to be countered by strong marketing margins. However, we expect GRMs to improve in H2FY24 on account of anticipated increase in demand. The company also has expansion plans and intends to increase its consolidated refining capacity from 80.55 MMTPA to 107 MMTPA by 2024-25.
Impact: Positive