BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Indian Oil Corporation Ltd. reported better-than-expected margins on all fronts- refining (core at 4.4 U.S. dollar per barrel of oil), marketing (Rs 8.6 per liter) and petrochemical (Ebitda/metric tonne at 200 U.S. dollar), with in line refining throughput.
Marketing sales were 6% lower than estimate owing to impact of the Covid-19 led lockdown.
Despite the sharp crude price increase (from its multi-decade trough) during Q1 FY21, Indian Oil reported total inventory loss of Rs 32 billion owing to its longer inventory cycle.
However, margins led to a huge beat on our Ebitda estimates. Also, debt has decreased QoQ from Rs 1,165 billion to Rs 986 billion.
For Indian Oil’s share of marketing in total Ebitda increased from approximately 20% in FY17 to approximately 32-40% in FY19-20, reflecting a more diversified earnings mix.
While refining margins are dependent completely on global macros, marketing margins are more under the control of the Oil Marketing Companies (OMCs).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR