Centrum Broking: Covid-19 Takes Its Toll On Indian Oil’s Quarterly Performance

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..Centrum Broking Report.Indian Oil Corp. Ltd. reported Ebitda/profit after tax at Rs 55.1 billion/Rs 19.1 billion (down 29/down 39% YoY), above our estimate Ebitda/profit after tax Rs 37.3/Rs 3.3 billion despite weak operational metrics.The beat was largely driven by low other expenses of Rs 70.5 billion (down 15/down 44% YoY/QoQ), below our estimate Rs 105 billion driven by low power and fuel consumption as well as lower repair and maintenance costs.Indian Oil reported weak gross refining margins (GRMs) at negative approximately 2 U.S. dollar per barrel of oil (bbl) our estimate 2.3 U.S.dollar/bbl impacted by inventory loss of 6.4 U.S. dollar/bbl versus our estimate of an inventory gain 1.8 U.S. dollar/bbl, resulting in core GRMs at 4.5 U.S. dollar/bbl (our estimate 0.5 U.S. dollar/bbl).Marketing volumes of 16.5 metric tonne (down 27% YoY, our estimate 18 mt) also remained weak due to Covid-19 impact.However, higher than expected refining throughput of 12.9 mt (down 25% YoY, our estimate 12.5mt) and higher blended marketing margins of Rs 7326 per tonne (up 55% YoY, our estimate Rs 6054 per tonne) supported earnings to some extent.Gross debt for Indian Oil in Q1 stood at Rs 986 billion, up 37/down 15% YoY/QoQ..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Centrum Broking: Covid-19 Takes Its Toll On Indian Oil’s Quarterly Performance

Higher-than-expected refining throughput and higher blended margins supported Indian Oil’s earnings to some extent.

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