Indian Oil Corporation Ltd Q3 2021 Earnings Call Transcript

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

Question: Avadhoot Sabnis - CIMB Research - Analyst : Yes. Am I audible?

Question: Avadhoot Sabnis - CIMB Research - Analyst : Yes. So basically, again, the question relates to the new refineries.

Question: Avadhoot Sabnis - CIMB Research - Analyst : Can you hear me now?

Question: Avadhoot Sabnis - CIMB Research - Analyst : Okay. As I said, 2 aspects, sir. Exactly, I mean, I think the press release pointed out that we may need to seek approvals of NITI Aayog and stuff like that before you start to work. Could you just clarify exactly what kind of approvals are required and by whom? And what is the time line you're looking at before you actually start working on the project? And... REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 02, 2021 / 5:30AM, IOC.NS - Q3 2021 Indian Oil Corporation Ltd Earnings Call

Question: Avadhoot Sabnis - CIMB Research - Analyst : Okay. Okay. Firstly, as I said, I think the press release mentioned that you may need to seek approvals of NITI Aayog, okay, before you start to work on the refineries. So if you could clarify exactly what kind of approvals are required by which bodies for setting up that refinery? And when do you expect all these approvals to be in your hand? And as I said, when the catalyst will actually start to work on the refinery, okay? And secondly, in terms of financing, in terms of how serious are you about external investor? Because if you are -- actually want to get it done, I would assume the fastest way to get it done is putting it on your own balance sheet. Bringing in Chennai Petroleum, I can understand the sort of the sentimental logic in terms of they own the land and stuff like that. But of course, sir, we look at Chennai's own financials, make it quite clear they will really struggle to put in their own sort of contribution to it, which could create a problem for you going forward. So that was the second question, as to what is the logic of putting it in a JV rather than in your own balance sheet. I'll stop here.

Question: Avadhoot Sabnis - CIMB Research - Analyst : I mean, I had -- maybe I had a more philosophical question as to why are you looking for a partner in the first place.

Question: Avadhoot Sabnis - CIMB Research - Analyst : If I may just add, is it possible to give now the broad -- I mean, just to reiterate the CapEx level for this year and next year, at least a broad number?

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Sir, my question relates to the pipeline monetization. We have been considering pipeline assets as one of the core for -- strength of our business. And if you monetize some of these pipelines, don't you think that the strength of the business will get affected and competition will also get the equal edge, which we have right now today? And the second thing, what are we planning to do with this money? Is this money to be distributed to the shareholders back in the form of dividends? Or would it be redeployed back into the refining business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 02, 2021 / 5:30AM, IOC.NS - Q3 2021 Indian Oil Corporation Ltd Earnings Call

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : And sir, what will we be doing with the cash which we'll generate through this route?

Question: Amit Rustagi - UBS Investment Bank, Research Division - Analyst : Sir, but don't you think that monetizing pipelines and then putting money in the [refineries], that may be a further bad decision because of the performance of the refining businesses?