Indian Oil Corporation (IOC) will report its second quarter numbers on Thursday. IOC has been in focus since the news of Bharat Petroleum Corporation Limited (BPCL) divestment. The stock has shot up 30 percent since the August lows of around Rs 210.
Profitability is expected to decline by around 2 percent to come in at Rs 3,517 crore, while profit before tax (PBT) number is expected at Rs 2,805 crore, a decline of almost 46 percent on a quarter-on-quarter (QoQ) basis.
While the gross refining margins (GRMs) are expected to improve there will be some inventory losses, leading to a 35 basis-point decline in operating profit margins QoQ. Reported GRMs are expected to improve by 10 percent, while core GRMs are expected to improve by 66 percent on a sequential basis.
The marketing margins are expected to be steady but the marketing sales volume is expected to decline by around 3 percent because of the auto sector slowdown in the country.
The company's petrochemical segment is expected to do well with the anticipation of an 86 percent earnings increase on a sequential basis. Overall, marketing, refining and the petrochemical segment are expected to do well.