Marketing Margins – An Elixir For OMCs, Says Motilal Oswal

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.

Motilal Oswal Report

The Covid-19 outbreak has brought about huge volatility in the Oil and Gas space, resulting in highly unpredictable margins.

Refiners continue to face the longest stretch of poor refining margins. Although, for oil marketing companies, marketing margins have truly been an elixir.

Retail auto fuel prices in India have reached all-time highs, thus restricting gross marketing margins to Rs 1.7–2.7/litre (versus Rs 4.5–5/litre in Q3 FY21).

However, gross marketing margins in FY21 to-date still average Rs 6.5–7/litre (well above the long-term average of approximately Rs 3/litre).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.