Going forward in the week, some other major companies on the investors’ radar for quarterly numbers will be Kotak Mahindra Bank, DMart, Adani Power, Ambuja Cements, Adani Wilmar, Adani Enterprises, Coal India, Titan and others.
Here’s what to expect from Indian Oil Q4
Indian Oil is expected to post largely flattish numbers for the quarter ended March 2024. Revenues for the fourth quarter are likely to grow around 1%, while reported profit is seen falling up to 20% year-on-year. Operating profit is also likely to be flat.
“We expect sequentially lower refining margins (IOC reported surprising adventitious gains in 3QFY24). Marketing earnings should increase on better diesel margins,” said Kotak Equities.
The brokerage assumed reported GRM of $12.5/bbl (versus US$13.5/bbl qoq) and crude throughput to be down 3% quarter-on-quarter to 18 mmt.”Auto fuel over-recovery to be likely around Rs 2200 crore and also estimate adventitious gains of nearly Rs 2000 crore, with a gain of Rs 1100 crore or $1/bbl in refining (reported surprising gains of $3.5/bbl or Rs 4000 crore in 3QFY24) and Rs 930 crore in the marketing business (versus our estimate of Rs17 bn inventory loss in 3QFY24),” it said.Meanwhile, Nuvama anticipates Indian Oil’s EBITDA to dip 5% year-on-year, led by weak refining partially offset by strong marketing.”Benchmark Singapore GRMs fell 10% year-on-year (37% quarter-on-quarter) on weak global product cracks. Meanwhile, we expect throughput to fall 6% year-on-year, driven by maintenance shutdown. We estimate diesel margins at Rs 2 per liter. % year-on-year rise in domestic retail sales this quarter. Petchem is likely to remain underdue on weak year-on-year realization however improved sequentially,” the brokerage said.
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