IOC failed to impress the Market with its Q2

Oil marketer Indian Oil Corporation (IOC) Ltd today posted a net profit of Rs 3,121.89 crore for Jul-Sep quarter (Q2FY17) compared with a net loss of 450.24 crore in the corresponding period last year. Standalone profit was seen falling 61.6 percent sequentially to Rs 3,174 crore as refining margin was seen declining to USD 4.1 a barrel from USD 10 a barrel in previous quarter.

The Street didn’t look impressed with IOC Q2 results as IOC share price declined over 3% in the trade today.

The company’s total income from operations for the quarter also went up to Rs 100,273 crore during the second quarter of the current financial year as compared to Rs 97,299 crore in the corresponding quarter last year. Revenue was expected to fall 15 percent quarter-on-quarter to Rs 91,077 crore in Q2. While, Operating profit during the quarter was anticipated to plunge 53 percent to Rs 6,436 crore and margin was seen shrinking to 7.1 percent from 12.8 percent in previous quarter. Indian Oil Corporation’s average gross refining margin through the period increased to $7.19 per barrel against $5.76 per barrel in Jul-Sep last year. Gross refining margin (GRM) is the difference between total value of petroleum products and price of crude.

Meanwhile, IOC share price closed at Rs. 312.95 with a drop of 3%.

Earnings before interest, tax, depreciation and amortization of the company, i.e. EBITDA during Jul-Sep stood at 5.7 per cent. During the period under review, IOC’s total expenditure also declined a bit to Rs 96,006 crore compared with Rs 97,781 crore in the corresponding period last financial year with cost of materials consumed declining from Rs 39,375 crore to Rs 36,960 crore in Q2 this year. The company’s other income for the period hiked to Rs 854 crore from Rs 472 crore last year. IOC said that in Jul-Sep, the company domestic sales stood at 18.4 million ton as compared to 18.13 million ton a year ago while exports increased to 1.2 million ton from 0.92 million ton last year.

Dynamic levels recommended IOC among the top 500 shares for the quarter. For the details on the stock, visit IOC share price history page of Dynamic Levels website.

IOC Paying Out Benefits to Investors

The company announced that its board meeting will be held on Monday, August 29 to consider issue of bonus shares. On August 10, 2016 the company has reported that a board meeting of the company is scheduled on August 29, 2016, for considering and approving the unaudited financial results of the company for the first quarter ended June 30, 2016. IOC share price has moved higher by nearly 5% to Rs 568 on both the bourses.

Earlier, on 17^th August 2016, the company had declared the final dividend of Rs. 8.50 on each share of face value of Rs. 10. IOC share price has witnessed a lot of changing of hands of late. On 19^th 2.36 times increased volume in shares traded was seen while on 23^rd the volume was 2.12 times greater. Today, a total of 44,09,227 shares changed hands which is 2.56 times higher than the average traded volume. IOC share price closed at Rs. 565.10 with a rise of almost 4%.

IOC’s peers Hindustan Petroleum Corporation and Bharat Petroleum Corporation had also issued bonuses. HPCL, on July 20, had declared bonus shares in the ratio of two bonus equity share of Rs 10 each for every one existing equity share of Rs 10 each.

BPCL issued bonus shares in the ratio of 1:1 i.e. one new bonus equity share of Rs 10 each for every existing one fully paid up equity share of Rs 10 each. BPCL share price closed at 581.75 with a rise of around 1%.

All the three stocks are the top 500 performing stocks identified by Dynamic Levels. For details refer to the IOC share price history, HPCL share price history and BPCL share price history page of Dynamic Levels website.