Indian Oil Q4 Review - Marketing Margin, GRM Rise Key To Outlook: ICICI Securities

Storage tanks stand at an Indian Oil Corp. facility near Jawaharlal Nehru Port, Navi Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Indian Oil Q4 Review - Marketing Margin, GRM Rise Key To Outlook: ICICI Securities

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ICICI Securities Report

Indian Oil Corporation Ltd.’s Q4 FY21 recurring earnings per share is up four times YoY driven by inventory gain versus loss, petrochemical Ebitda jump and fall in interest cost.

FY21 recurring earnings per share is also up four times YoY driven by same factors as in Q4 besides 37% YoY rise in auto fuel net marketing margin.

We have raised FY22E earnings per share by 4% mainly on upgrade in petrochemical Ebitda to reflect the recent margin strength and outlook.

Net marketing margin is weak in FY22-to-date at Rs 0.43/litre.

Rs 2.05-2.5/litre price hike is required to boost it to Rs 2.5/litre, which is our FY22 estimate.

Click on the attachment to read the full report:

ICICI Securities India Oil Corporation Q4FY21 Results Update.pdf

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