Indian Oil Corporation Q3 net up 40.9% yoy at Rs6,143cr on the back of robust gross refining margins (GRM)

1 Feb 2022 , 08:30 AM

Indian Oil Corporation reported 62.36% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs165,339cr. On a sequential basis, the revenues were up by 24.13%.

During the December 2021 quarter, the company witnessed domestic product sales of 21.02 MMT and exports of 1.57 MMT; both slightly lower on a yoy basis.

Refinery throughput at 17.404 MMT in Q3 was also lower yoy while the pipeline throughput at 21.779 MMT was also lower yoy. On a yoy basis, the petroleum products business saw growth of 34.43% yoy in top line while the petchem business top line grew 26.63%.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 8.48% at Rs7,662cr. During the quarter, 9.2% growth in the EBIT of the petroleum refining business.

However, the EBIT of the petchem business fell sharply by -55% yoy. The average gross refining margins (GRM) for the first 9 months of FY22 worked out to $8.52/bbl as against 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.

Operating margins were lower on a sequential basis also, due to the higher top line effect.

Net Profit after tax (PAT) for the Dec-21 quarter was up 40.93% yoy at Rs6,143cr as the operating profit performance got transmitted to the bottom line. However, net profits were marginally lower on a sequentially basis. IOCL has a debt equity ratio of 0.70X.

While the DSCR has improved yoy, the interest coverage ratio has tapered sharply in the quarter. During the quarter, the inventory turnover ratios and the debtor turnover ratio tapered yoy.

PAT margins fell from 4.28% in the Dec-20 quarter to 3.72% in the Dec-21 quarter. The PAT margins were also lower on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Indian Oil Corp
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%