Hold Indian Oil Corporation Ltd.
Skids on non-issuance of oil bonds
Topline down 30%YoY, broadly in line with expectations: IOC reported a 29.5% YoY decline in revenues to Rs 609.7bn in Q2FY10, which was marginally below our estimate of Rs 632.4bn as the non-issuance of government bonds pushed up the subsidy burden during the quarter. The YoY decline in topline stemmed from a 68% drop in crude prices, which was partially offset by higher crude through put and product sales. The company’s crude throughput increased 3.4% YoY to 12.4mmt, whereas product sales rose 7.7% to 16.7mmt. GRMs (combining its seven refineries) came in at US$ 3.5/bbl versus US$ 6.4/bbl in Q2FY09.