Shares of Indian Oil Corporation fell on Friday after the company's June quarter earnings saw its gross refining margin missing street expectations.
The company's GRM for the June quarter stood at $8.34 per barrel, compared to a CNBC-TV18 estimate of $9.2 per barrel.
Brokerage firm Jefferies wrote in its note this morning that the earnings momentum has turned negative with narrowed discount on Russian Crude. "This will more than offset the recent GRM improvement," the note said. Elevated crude price is narrowing the market spread, according to the brokerage.
West Texas Intermediate Crude crossed the $80 per barrel mark on Thursday for the first time since April.
For the June quarter, revenue for the company was in-line with expectations, while the EBITDA margin was 20 basis points higher than the poll.
When compared to the March quarter, the company's revenue was flat, while margin expanded by over 300 basis points.
For the company's various segments, the petroleum products EBIT rose to Rs 18,720 crore from Rs 11,686 crore in the March quarter, while Petchem EBIT fell to Rs 88 crore from Rs 295 crore in March.
Shares of Indian Oil Corporation are trading 3.1 percent lower at Rs 95.55.
First Published: Jul 28, 2023 2:41 PM IST
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