Indian Oil Corpn Ltd Q1 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Sir, could you explain us that how much was outstanding from the government at the beginning of this financial year? How much has come through till date, like up to July in the last 4 months? And you have already mentioned that around INR 9,000 crores is still outstanding from the government at this moment. Is that correct?

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Yes. So we received around INR 9,300 crores from the government. I think in the last 1 month, in the month of July, have we received anything from the government? And what is outstanding now?

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : The remaining dues as of 31st of July.

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Okay. And sir, second thing, what was our Paradip refining margins for the current quarter? And how do we see panning them out in maybe next 1 year ratio?

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Understood. Are we like -- are we trying to do something different with respect to Pradip refinery because it's -- given its complexity that we can recoup better than Singapore margins because Singapore margins right now is $7 -- averaging $7 in last 1 month. Can we expect that going forward, the performance of Paradip refinery will be beating Singapore GRMs?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : Sir, I have a question on refining. So I know this was mentioned earlier, but if you can clarify what are the steps you are taking towards -- to maximize the GRM potential at your refineries and especially at Paradip in run-up to IMO. And second question, your marketing business performance is good, and we see the granular details of the sales trend. We are seeing -- you're losing market share in petro diesel but you're making up market share in ATF and other industrial products. So that's -- is -- are these products (inaudible) giving away too many (inaudible)?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : Yes. So my first question was on refining. How are we ensuring that we maximize the GRM potential for IOCs, refineries and also Paradip in run-up to the IMO regulations?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : The GRM potentials of the refinery.

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : Are we intending to increase the diesel output in our refineries?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : And part of it -- we've seen that it's not yet running up to the potential in terms of GRM contribution. Could you help us, would it be at its optimal potential by Jan 2020, and when IMO kicks in? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 01, 2019 / 6:30AM, IOC.NS - Q1 2020 Indian Oil Corpn Ltd Earnings Call

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : So we were talking about increasing the heavy oil utilization at our refineries. Where are we in that trajectory of using high sulfur?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : Secondly, on marketing, I just would like to repeat that you have -- if I look at the trends product-wise, you have lost market share in petrol and diesel while gaining ATF and other industrial products. So is this the reason why our margins have been strong in marketing?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : So it's basically driven by ATF and industrial products, where -- that's where the products you have gained margin?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : So it's -- the increase in volume EBITDA lower than the industry?

Question: Rohit Ahuja - BOB Capital Markets Limited, Research Division - Analyst : Right. So this EBITDA you're saying is sustainable, what you reported this quarter?