IOCL - 1QFY22 earnings update - YES Securities

IOCL's reported a healthy operating profit of Rs 111bn (+102% YoY), 30% above street estimates of Rs 86bn, but 19% below YES Sec estimates of Rs 137.7bn.

- 1QFY22 EBITDA/PAT at Rs 111.3bn (+102% YoY; -24% QoQ) and Rs 59.4bn (+210% YoY; -32% QoQ).

- GRM stood at USD 6.6/bbl, as compared to USD 10.6/bbl in previous quarter and USD (2)/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 16.7mmt, stood QoQ marginally weaker, implying 96% utilisation.

- Total Domestic products sales stood at 17.2mmt, which was 21% higher YoY but 11% lower QoQ.

- MS sales reported a growth of 33% YoY and HSD a growth of 23%YoY, however sales was down by 12% QoQ and 11% QoQ respectively, on account of Covid-II wave

- As we write, refinery utilization and transport fuel sales have largely recovered

- As per our estimates Gross marketing margins stood at~ INR 5160 per ton

- IOCL would host a call at 3pm on 02nd Aug 2021 to discuss 1QFY22earnings.

- We have a BUY rating on IOCL with a TP of Rs 170/sh.

Shares of Indian Oil Corporation Ltd. was last trading in BSE at Rs. 105.5 as compared to the previous close of Rs. 103.2. The total number of shares traded during the day was 1149224 in over 8985 trades.

The stock hit an intraday high of Rs. 105.8 and intraday low of 103.6. The net turnover during the day was Rs. 120755006.

Source : Equity Bulls

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