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.
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