HDFC Securities: Indian Oil’s High Inventory Losses Drag Q1 Earnings

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..HDFC Securities Report.Indian Oil Corporation Ltd.’s Q1 Ebitda and adjusted profit after tax were 13% and 18% below estimates, owing to higher-than-anticipated inventory losses.Ebitda came to Rs 55 billion (down 29% YoY) versus the operating loss of 111 billion in Q4 FY20.Refining business inventory losses were Rs 6 billion, and marketing inventory losses were Rs 32 billion. Forex gains stood at Rs 1 billion.Adjusting for these, the core Ebitda stood at Rs 86 billion (up 35% YoY and down 15% QoQ).Domestic marketing sales volume was 16.5 million metric tonne (down 24% YoY and 26% QoQ).India’s petroleum product consumption contracted by 26% YoY and 23% QoQ, thus demonstrating that Indian Oil gained market share on an annual basis and lost market share sequentially.Blended gross margin stood at Rs 6.0/litre (up 49% YoY and 30% QoQ) in Q1, but these do not seem sustainable in the near term. We expect the blended gross margin to correct approximately by Rs 4.3 in FY21/22E..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.

HDFC Securities: Indian Oil’s High Inventory Losses Drag Q1 Earnings

HDFC Securities: Indian Oil’s High Inventory Losses Drag Q1 Earnings

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