Moneycontrol
Last Updated : Jan 30, 2018 10:53 AM IST | Source: CNBC-TV18

IOC to declare Q3 earnings on Jan 30; here are 5 key things to watch out

Analysts expect subdued marketing margin due to inadequate price hikes.

Indian Oil Corporation (IOC) will announce its December quarter earnings on January 30. Analysts expect refining business to be offset by poor marketing performance and GST to continue to weigh on downstream companies.

IOC is likely to report better results than other oil marketing companies on the back of higher refining profits.

Here are five key things to watch out for:

Profit

Standalone profit after tax for the quarter gone by is expected to grow 41 percent to Rs 5,222 crore, from Rs 3,696 crore in previous quarter, according to average of estimates of analysts polled by CNBC-TV18.

Revenue

Revenue from operations may grow 31 percent to Rs 1,18,419.4 crore in Q3FY18, compared to Rs 90,566.7 crore in Q2.

Operational Performance

EBIDTA (earnings before interest, tax, depreciation and amortisation) is seen rising 27 percent quarter-on-quarter to Rs 9,387 crore from Rs 7,373 crore.

But margin is expected to contract 7.9 percent during the quarter, from 8.1 percent in previous quarter.

Refining Margin

Gross refining margin is seen rising by 2 percent to USD 8.2 per barrel compared to USD 8 per barrel on sequential basis, which is expected to be better than Singapore GRM, post refining shutdowns in Q2.

Singapore GRM in Q3 stood at USD 7.3 per barrel against USD 8.3 a barrel QoQ.

Other things

Throughput is expected to rise 12 percent following maintenance shutdowns in Q2.

Analysts expect subdued marketing margin due to inadequate price hikes.

Higher petrochemical margins may help stabilise EBIDTA margin.

Inventory gains will be keenly watched.

Key issues to watch for would be utilisation of Paradip refinery, GRM, capex plans, and forex/inventory changes.
First Published on Jan 30, 2018 09:33 am
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