Indian Oil Corporation (IOCL) Share Q3 Results
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.
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