- 01 Aug 2022
- ICICIdirect Research
IOC REPORTS STRONG GRMS IN Q1FY23 BUT MARKETING LOSSES LEAD TO NET LOSS
IOC - 143 Change: -0.67 (-0.47 %)News: IOC’s topline increased 22% QoQ to Rs 251932.9 crore. Marketing sales were at 23 MMT, up 5.4% QoQ while crude throughput was 18.9 MMT, up 3.7% QoQ. Reported GRMs came in at US$ 31.8/bbl with core GRM of US$ 25.3/bbl. EBITDA was at Rs 1358.9 crore, down 88.3% QoQ.The company reported net loss of Rs 1992.5 crore against PAT of Rs 6021.9 crore in Q4FY22.
Views: Results were lower than our estimates on profitability front. While refining operations reported healthy profits amid rise in product cracks, overall marketing profitability was lower than estimates as per our understanding as the company did not fully pass on increased crude oil costs to customers. While GRMs have corrected from peaks witnessed in Q1FY23, sustaining GRMs at higher level will be important. Also, passing on higher crude costs to retail customers will be key monitorable in near term.
Impact: Neutral.