Indian Oil - Q4 FY21 Earnings Call Takeaways: ICICI Securities

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ICICI Securities Report

Based on nine months and FY21 reported and core gross refining margins, we had estimated Indian Oil Corporation Ltd.’s Q4 reported GRM at $12.5/barrel of oil and core GRM at $4.5/barrel of oil.

However, on the earnings call, the company stated that nine months GRM has been restated, hence Q4 core GRM was $2.51/barrel of oil and reported GRM $10.59/barrel of oil.

This implies nine months FY21 core GRM was $2.23/barrel of oil and reported GRM $3.69/barrel of oil.

As per petroleum ministry data, petrol sales volumes were down 3% (up 145% YoY) and diesel down 8.8% (105% YoY) in April 2021 versus levels in April 2019, while Indian Oil has indicated that oil marketing companies’ petrol and diesel sales volumes were down 5-11% versus levels in April-19 (up 140-100% YoY).

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