IOCL - Q4 FY21 first cut - YES Securities

IOCL 's reported a strong operating profit of Rs 147bn, as against just Rs 2.15bn in 4QFY20 and Rs 96.3bn in 3QFY21. Earnings while meaningfully above street expectations (Rs 91bn), missed our estimates (YES: Rs 172bn). Strength in earnings was driven primarily by strong refinery margin of USD 10.6/bbl.

Key highlights:

- 4QFY21 EBITDA/PAT at Rs 147bn (+164% YoY) and Rs 87.8bn (+166% Yoy). The base quarter last year was impacted by abnormal inventory write downs on account of sudden fall in crude oil and product prices.

- FY21 EBITDA/PAT clocked in at Rs 393bn (+116% YoY) and Rs 218.4bn (+133% YoY)

- GRM stood at USD 10.6/bbl, as compared to USD 2.2/bbl in previous quarter and USD (9.6)/bbl in same quarter last year. The strength in GRM is most likely driven by strong inventory gains (which IOCL has not disclosed separately).

- The refining throughput at 17.6mmt, stood QoQ marginally weaker, implying 102%utilisation.

- Total Domestic products sales at 19.4mmt, stood practically flat on YoY and QoQ basis.

- MS sales reported a growth of 8% YoY and HSD a growth of 2%YoY, however sales was down by 4% QoQ and 2% QoQ respectively, possibly on fewer days in the 4Q compared to 3Q.

- Gross marketing margins stood sequentially flat at~ INR 5590 per ton

IOCL would host a call at 2:30pm on 20th May 2021 to discuss 4Q & FY21 earnings.

Shares of INDIAN OIL CORPORATION LTD. was last trading in BSE at Rs.107.2 as compared to the previous close of Rs. 105.55. The total number of shares traded during the day was 4137163 in over 14605 trades.

The stock hit an intraday high of Rs. 109 and intraday low of 104.15. The net turnover during the day was Rs. 441885022.

Source : Equity Bulls

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