- 31 Oct 2022
- ICICIdirect Research
IOC RECEIVES ONE-TIME GRANT OF RS 10,801 CRORE FOR UNDER RECOVERIES ON SALE OF DOMESTIC LPG IN Q2FY23
IOC - 138 Change: -0.42 (-0.30 %)News:
IOC’s topline declined 9.4% QoQ to Rs 228359.4 crore. Marketing sales were at 21.6 MMT, down 6.1% QoQ while crude throughput was 16.1 MMT, down 15% QoQ. Reported GRMs came in at US$ 18.45/bbl. The company received a one-time grant of Rs 10,801 crore from the GoI for the under recoveries suffered from sale of domestic LPG. EBITDA was at Rs 1960 crore, up 44.2% QoQ. The company reported net loss of Rs 272.4 crore in Q2FY23
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Results were higher than our estimates on profitability front on account of the one-time grant provided and better than expected refining margins. Overall marketing loss was higher than estimates as per our understanding as the company did not fully pass on increased crude oil costs to customers. Although product cracks have corrected from peaks witnessed in Q1FY23, passing on higher crude costs to retail customers will be key monitorable in near term
Impact:
Neutral