IOC Q3 Review - Nine Months EPS Surges; Margin Recovery Key To Outlook: ICICI Securities 
An man buys petrol for his car at an Indian Oil Corporation petrol station in New Delhi, India. (Photographer: Amit Bhargava/Bloomberg News)

IOC Q3 Review - Nine Months EPS Surges; Margin Recovery Key To Outlook: ICICI Securities 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Indian Oil Corporation Ltd.’s Q3 FY21 standalone and consolidated recurring earning per share are up 175-145% YoY driven by rise in inventory gain, marketing margin, other income, petrochemical Ebitda and fall in interest cost.

Excluding inventory gain/loss, Q3 standalone EPS is up 250% YoY. Nine months standalone and consolidated recurring EPS are up 140-129% YoY.

Factoring-in the nine months inventory gain has led to 2% upgrade in FY21E EPS, but target price remains unchanged at Rs 105 (six times FY22E Ebitda).

While gross refining margins continue to be weak, even net auto fuel marketing margin has turned weak.

Click on the attachment to read the full report:

ICICI Securities IOC Q3FY21 Result Update.pdf


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