Indian Oil Corporation (IOCL) Share Q3 Results

Indian Oil Corporation

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:44:57+05:30

The quarter ended Dec-21 was favourable for Indian Oil Corporation in that there was a sharp improvement in the gross refining margins (GRMs). The higher crude prices also helped revalue the inventories positively. The benchmark Singapore GRM also stayed robust, boosting the bottom line in a substantive manner.


Indian Oil Corporation Quarterly Numbers
 

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 1,65,339

₹ 1,01,835

62.36%

₹ 1,33,202

24.13%

EBITDA (Rs cr)

₹ 7,662

₹ 7,062

8.48%

₹ 8,184

-6.39%

Net Profit (Rs cr)

₹ 6,143

₹ 4,359

40.93%

₹ 6,204

-0.98%

Diluted EPS (Rs)

₹ 6.69

₹ 4.75

 

₹ 6.76

 

EBITDA Margin

4.63%

6.94%

 

6.14%

 

Net Margins

3.72%

4.28%

 

4.66%

 

 

For the Dec-21 quarter, Indian Oil Corporation reported 62.4% growth in sales at Rs.165,339 crore. Domestic product sales at 21.02 MMT and exports at 1.57 MMT; were marginally lower on a YoY basis. Also lower on a YoY basis were the refinery throughput at 17.404 MMT as well as the pipeline throughput at 21.779 MMT in the third quarter.

In terms of the performance of key verticals on a YoY basis, the core petroleum products business of IOCL saw growth of 34.4% in sales revenues while the much smaller petrochemicals business also witnessed a top line growth of 26.63%. On a sequential basis, the revenues were up by 24.13% compared to Sep-21 quarter.

Let us turn to the operating profits of IOCL for the Dec-21 quarter. Operating profits were up on 8.48% at Rs.7,662 crore on a YoY basis. During the quarter, IOCL witnessed 9.2% growth in petroleum refining EBIT. However, the petchem vertical saw EBIT falling sharply by -55% compared to the previous year. The operating profits were lower sequentially.

The all-important average gross refining margins (GRM) for first 9 months of FY22 stood at an impressive $8.52/bbl in contrast to just $2.96/bbl in the corresponding period last year. Operating margins fell from 6.94% in Dec-20 quarter to 4.63% in the Dec-21 quarter. The OPM was also lower on a sequential basis but the dent was more due to high sales.

For the Dec-21 quarter, the Net Profits were up by 40.9% YoY at Rs.6,143 crore. This was largely on account of the operating profit performance getting transmitted to the bottom line. However, net profits were marginally lower on a sequentially basis, which was the trend in the operating profit also. IOCL had a debt equity ratio of 0.70X as of Dec-21.

In terms of the solvency parameters, the DSCR has improved YoY while the interest coverage ratio tapered sharply in the quarter. The Dec-21 quarter also saw inventory turnover ratio and the debtor turnover ratio trending lower on a YoY basis. Meanwhile, PAT margins fell from 4.28% in the Dec-20 quarter to 3.72% in the Dec-21 quarter. Even on a sequential basis the PAT margins ended up being lower.


Start Investing in 5 mins*

Get Benefits worth 2100* | Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Open Free Demat Account

& get benefits worth 2100*

Resend OTP
Please Enter OTP
  • Have Promo code?
  • Use code ACT2100
Enter Promo code
Account belongs to

By proceeding, you agree to the T&C.

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number