Ladies and gentlemen, good afternoon, and welcome to Q4 FY 'twenty one Conference Call of Indian Oil Corporation Limited, organized by Bati Wala and Karani Securities India Private Limited. At this moment, all participants are in a listen only mode. Later, we will conduct a question and answer session. Please note that this conference is recorded. I would now like to turn the conference over to Mr.
Ashraj Agarwal. Thank you and over to you sir.
A very good afternoon to all. On behalf of Batya and Karani Securities, I welcome you all to the post results conference call with the management of Indium Oil Corporation. It gives us We have pleasure to once again host the management for this post digital discussion. I would now like to hand over the call to the management for initial remarks. Post its, we'll open the floor for interactive Q and A question and answer session.
Over to you, sir.
Thank you, Mr. Harfaraj. We welcome you all to the post results conference call. From the management side, we have got Mr. Sandeep Kumar Gupta, Director of Finance, Indian Oil Corporation Mr.
Matthew Thomas, Executive Director, Corporate Finance and Treasury and along with them, we have got Mr. Ruchi Raghrawal, Chief General Manager, Corporate Finance and Mr. K. S. Keshavan, Deputy General Manager, Corporate Finance Mr.
Subhajit Sarkar, Senior Finance Manager, Treasury and myself, Prabhat Himasinga, General Manager, Treasury. To begin with, Datta Finance will briefly touch upon the quarterly performance highlights and then he will take the question. Now I request that of Finance Indian Oil to address the meeting.
Dear investors and analysts, a very good afternoon to all of you. I hope everyone of you is safe and sound. I take this opportunity to welcome all of you to the conference call post announcement of the annual results for financial year 2021. Hope you have gone through our results and you have got the numbers from our teams also. But before I go to the results, First, our initiatives on fighting this COVID-nineteen crisis of the nation.
Team Indian Oil has been working rigorously for the past several weeks for positioning of liquid oxygen and ISO containers or cryogenic Road tankers for transportation of liquid oxygen consequent upon the increased requirement of liquid medical oxygen in the northern and western states from the eastern part of the country where oxygen is surplus. As on date Indian Oil has mobilized 41 cryogenic road tankers and ISO containers For utilization in supply of liquid medical oxygen, Indium Oil is also in process of converting 16 of its LNG feeds 2 liquid oxygen carriers in view of the prevailing situation. In addition, the corporation is arranging around 200 ISO containers on lease or outright purchase basis. Indian Oil is also coordinating with Ministry of External Affairs, Indian Air Force, Indian Navy and International Corporation Division of MOPNG and Indian Missions abroad for procurement of liquid oxygen from major liquid oxygen suppliers like Linde in the Middle East, Singapore and China. Approximate quantity tied up is around 14,000 metric ton spread over a period of 3 months.
In addition, Indian Oil is providing logistic support for liquid oxygen being received as gratis from Middle East countries like Bahrain, UAE and Kuwait. Indium Oil diverted high purity oxygen 99.9% concentration used in the monoethylene glycol or MEG unit to produce medical grade liquid at its Panipat Refinery and Petrochemical Complex. Liquid oxygen generation has been increased progressively from 17th April 2021 by minimizing gaseous oxygen consumption by reducing throughput of the petrochemical plant. On date maximum possible quantity of 2 70 metric tons per day of liquid oxygen is now being supplied to different hospitals in the states Delhi, Haryana and Punjab. Indium Oil is setting up a cylinder filling facility at Panipat to cater to the dire need of oxygen cylinders.
This would facilitate filling capacity of approximately 1200 cylinders per day at 150 bars pressure. Expected commissioning of this facility is by end of June 2021. Indian Oil is also contributing in operationalization of temporary jumbo 500 bed COVID care hospital at Panipat. This facility has been constructed by Haryana Government and is equipped with a dedicated gaseous oxygen pipeline of 15 metric tonnes per day Capacity installed by Indian Oil to source oxygen from its refinery complex. Indian Oil is also setting up a PSA based medical lead oxygen generation units at 12 locations in the states of Madhya Pradesh, Odisha and Uttar Pradesh.
Indian Oil is supplementing the available cold chain equipment infrastructure of 4 states, namely Jammu and Kashmir, Tamil Nadu, Bihar and Manipur for the storage and transportation of vaccine. Indian Oil has launched a nationwide network of COVID coordination centers for IOCNs from 25th April 'twenty one providing 24 hour helpline services. As on date, Indranil has opened 95 such COVID care centers pan India with a total of 8 25 beds. As regards to the vaccination status, around 15,500 employees of Indium Oil have already been which works out to around 49% of the total employee strength, vaccination of more than 90% of 45 plus age employees of Indium Oil has already been achieved. In addition to extending insurance for the 2nd year, Indian Oil is organizing vaccination drive for approximately 4.2 lakh of its contract workmen and employees of business channel partners like LPG delivery boys, pump attendants, truck drivers and crew members.
Throughout this pandemic, Indium Oil maintained uninterrupted supplies at its ROs and in fact recorded 33.11 Lakh LPG LPG LPG cylinders delivered on a single day on 30th April 2020 And nearly 100% of referring to of flights in Vande Bharat Mission is also being arranged by Indium Oil. Now coming to this recent cyclone talk day, precautionary measures were taken at supply points, retail outlets and LPG Distributors ships under Keral, Mccarnataka, Maharashtra and Gujarat state offices so as to minimize losses and to maintain uninterrupted supply line of PUL products. Till this point of time, no major damage has been reported from any of the IOC locations. Some damage at retail outlets with respect to canopy, false ceiling, monolith, holdings, Fiat Lights etcetera has been reported. LPG distribution in coastal districts under Gujarat State Office were affected and is likely to be resumed very soon.
Now coming to the highlights for the year. Indian Oil commissioned 3,000 retail outlets during the last fiscal year taking our total tally to 32,060 retail outlets. Additionally, 310 CNG stations and 637 mobile dispensers were also brought in stream. We continue to put concerted efforts to ensure that we retain our market leadership across geographical areas in times to come both through network expansion and enhanced per pump throughput. Further to XP100 launched earlier, XP95 Premium Petrol was launched on 1st May 2021 and is now available at 2,500 ROs and will be available at around 6,000 ROs by July.
We also solarized 1658 ROs during the year taking the total Solarized RO number to 18,336, which is around 57% of our total ROs. Company has taken host of digital initiatives in LPG marketing From asking Alexa to book your next refill to registering for a new connection through WhatsApp or missed call, Indian Oil also launched the Atkaal Indian service to deliver LPG refill at our customers' doorsteps within 2 hours of booking at select cities. Further to launch of Chotu 5 kilograms Free trade LPG cylinder, the combo DBC scheme of 14.2 plus 5 kilograms and composite cylinder in 5 kilograms or 10 kilograms which are lightweight and translucent have also been launched. We also have in our bouquet of offerings extra paid LPG for our industrial customers which provides fuel saving using our R and D technology. Petrochemicals is continuously scaling new heights in physical performance.
Highest ever petrochemical sales of 2,670,000 metric ton has been achieved in financial year 2021 against previous highest of 2.5 5,000,000 metric tonne in financial year 2018 2019. This does not include export sales. Besides expanding our existing petrochemical facilities, All our refinery expansions are coming with petrochemical facilities to tap the growth and profit potential. With the commissioning of 143 kilometer long Ramanath Indian Oil has achieved a milestone of 15,000 kilometer pipeline network length. In R and D, our HCNG experiment in Delhi, wherein we are applying 50 CNG buses on In situ HCNG Fuel is progressing well.
Further to adoption Bayer refinery in Serbia earlier, our Inmax technology has been selected by NRL also for its upcoming 1,900,000 metric ton FCC. Aligning Indian Oil's business objectives With national priorities, we have sharpened focus on bioenergy and renewables also. Inanol has initiated marketing of CBG from 11 plants through 18 retail outlets is spread over 5 states with total sale of CBG in 2021 exceeding 9 62 metric tonnes. Presently, Indian Oil has a portfolio of 230 Megawatts of renewable energy consisting of 168 Wind and 65 Megawatt of Solar. For electric vehicles, we now have 257 charging stations and 29 battery swapping stations throughout the country.
We are also working on aluminum air battery technology with a foreign technology company with plans to put up manufacturing facility in India. We retained Numero Ono position in lubricant sales and registered highest over growth of 24%, which translates to a volume of 98 TMT with doubling our profits from loops. New loop facilities are also coming up at Haldia, Baroda and Panipat refineries. Gas sales also registered the highest ever volume at 4,767,000 metric ton during the year. Talking about numbers, the average price of crude Indian basket during the quarter was at $60.45 per barrel, an increase of 35% from the price of immediately preceding quarter that is Q3 FY 2021.
If we compare on a yearly basis, the average price during the current year has been 40 dollars 4.84 per barrel as against $60.61 per barrel in financial year 2019 2020. With respect to crack spreads, MS cracks has improved during the quarter at $5.39 per barrel with reference to Indian basket of crude as compared to the preceding quarter, which was $2.97 per barrel. Crags are also higher than the corresponding quarter of FY 'twenty. For HLSD, the crack spread during this quarter at $3.78 per barrel has been higher as compared preceding quarter of $2.44 per barrel. However, the cracks are significantly lower than the corresponding quarter of financial year 2020, which was at $8.77 per barrel.
As far as petrochemical spreads are concerned, spreads for polymers in this quarter at $6.90 per tonne was 6% higher than the previous quarter and about 45% higher than the corresponding quarter of FY 2020. In case of PTL, the spread during the quarter was about 39% higher than the previous quarter. However, the same was 2% lower than the corresponding quarter of FY 2020. This quarter, we have registered a profit after tax of INN 8,781 crore and for the year 2021, PAT is INN 28 at INN 36 crores as against INN 13.13 crores in FY 2020. As you are aware, the unprecedented fall in crude and petroleum product prices in March April 'twenty led to extraordinary inventory losses during FY 'nineteen, 'twenty and resultantly dragged down the profitability of last year.
While in the current financial year, the crude prices have been on an uptrend, thereby resulting in accretion to margins. With vaccinations being rolled out across the globe, we are expecting improvement in refining margin environment going forward, which should help recovery in crack spreads. Revenue from operations during this quarter is INR 1,000,000 6 3,606 crores as against INR 1,000,000 46,599 crores in the Q3 of this year. So let me briefly touch upon performance of major verticals during Q4. First, Refinery, The throughput during the quarter was at 17,600,000 metric tonne with a capacity utilization of 102.4%.
The throughput of FY 2021 was at 62,400,000 metric tonne with a capacity utilization of 89.5%. Throughputs were severely impacted during 1st 2 quarters of the last fiscal due to fall in demand because of COVID-nineteen. UCL Refineries have registered a GRM of $10.59 per barrel during the current quarter. The normalized GRM after Stripping off inventory impacts and factoring in price lags for the quarter is $2.51 per barrel. Our refineries have outperformed the benchmark Singapore GRMs During Q4, Singapore GRMs being $1.79 per barrel.
Coming to pipelines, The capacity utilization of our pipelines was about 92.4% during this quarter as compared to 92.2% in Q3 of FY 2021. Capacity utilization of pipelines during FY 2021 was down by 10% at 80.4% compared to previous financial years. This was due to impact on both crude as well as finished product throughput due to COVID-nineteen. Our pipelines continued to generate stable returns giving of about INN1600 crores during this quarter. The marketing coming to marketing, the petroleum product sales during the quarter was 20,800,000 metric ton as compared to 21,230,000 metric ton in preceding quarters.
On a yearly basis, it was lower in financial year 2021 at 74,750,000 metric ton than in financial year 2020. The The marketing EBITDA for this quarter stood at INR 3443 crores as against INR 7,130 crores during the previous quarter. In petrochemicals, during the quarter, the petrochemical business reported an EBITDA of INR 2.24 crores as against INR 19.54 crores in the previous quarter. Better margin environment along with increased production volumes helped in posting healthy EBITDA in the petrochemical segment during the year. On borines front, the borines as on 31st March 2021 was at INR 1 lakh 200,327 crore as against INR 1 lakh INN16,545 crores as on 31st March 'twenty.
The above figure as on 31st March 'twenty one includes a lease obligation of INR 7914 crore, which has been classified as borrowing as per India's requirements. The decrease in borrowings have been primarily driven by reduction in receivables from GUI and normalization of inventory levels as compared to that of 31st March 2020. I hand my briefing here. We will now take your questions. Thank you very much.
Certainly, sir. Ladies and gentlemen, we will now begin the question and answer and you wish to withdraw your request, you may do so by pressing star and 1 again. We have our first question from Nafisa Gupta from Bank of America. Please go ahead.
Thank you. Good afternoon, sir. Sir, could you give us the split for the inventory gains for the quarter?
Now these price fluctuations now have become a regular phenomenon and every year we are seeing the fluctuation in the prices which are resulting in inventory gains and losses. Even the crack spreads are also varying to a large extent, which are also part, integral part of the margins. So now to give a particular set of figures perhaps is not okay And hence, we are not giving this figure since this is not a statutory requirement also. However, Since we have been reporting GRMs as a part of our results, we also have given the net GRMs stripping off the inventory.
Got it. So, sir, again to repeat just the core GRM for 4Q 2021, Did you say it was around 2.3 for the quarter?
For the quarter, it was 2.51 And for the full year, it is 2.31.
All right. Got it, sir. And sir, my second question is on the throughput for the petchem and On the petchem front, firstly, because of the oxygen supply, what kind of throughput losses do you see there? And on the refineries bit, So again,
there has been some Excuse me, Nafisa. There was an interruption. Can you please repeat this question?
Yes, sir. So I was Seeing that on the throughput front, firstly, also the petchem side, since we've been supplying oxygen for COVID, what kind of throughput impact do you happening on the petchem segment? And also on the refinery, since there is some demand destruction on the fuel side, what kind of throughput drop for the refineries.
Yes. First on the oxygen from Palipat Refinery. This oxygen was being utilized for MEG plant only, whereas our mainstay in petrochemicals is naphtha cracker and PTA. So we do not anticipate any noticeable difference in the throughputs of petrochemical on an overall basis or consequently on the profits. Now coming to the petroleum, Though COVID took a great toll of demand in the recent fortnight, but we are seeing the situation fast improving with decrease in the number of cases through the country.
And we hope that the situation should get corrected Soon and it should not take that long which it took in the 1st phase of COVID. So April refinery throughput was at 96%, but it was scaled down in the 1st fortnight of May to 84%, 85% And perhaps may continue at lower levels in this fortnight also, but we are seeing the situation fast improve.
Got it. And sir, lastly on the CapEx, how much was the CapEx in FY 2021? And what is the target for 2022?
Last year, we spent about INR 27,000 crores. And this year, our target is about INR 28,500 crores.
Got it, sir. Thank you. Thank you, Ms. Nafisa. We have next question from the line of Mr.
Auguste Sabneet from CIMB. You can go ahead.
Yes. First question for As far as your GRMs are concerned, you have been giving the reported GRM number as a normalized GRM number on a regular basis. Now if I look at let's take the normal GRM numbers, FY21 is 5.64. For the 1st 9 months, it was 2.96. Okay.
Sorry, but as for mass calculation, then automatically the 4th quarter number tends to be 12.5 and not 10.6, Which you are saying similar sort of there is anomaly for the normal GRM as well as against 2.5 that you think for the Q4, it actually works out to 4.5. If I have got something wrong.
So, though your competition may be correct, there was some restatement, some recompetition at our end, And we have accordingly restated the numbers.
Okay. So 4th quarter number is the right number, that's for the restatement?
Yes. Which is gross $10.59 per barrel and net $2.51 per barrel.
2nd is could you share the latest debt number given that historically the March number is not a representative of the average number For the year or the quarter?
It is at about INR 87,000 crores, which is roughly you can calculate the debt equity accordingly.
And what was subsidy during March, permanent subsidy?
Now subsidies are very less and the total outstanding as on 31st March, Claims lodged, claims not lodged is except the crores.
Sorry, sir.
As on 31st March 2021, the total receivable from Government of India towards DBTL and SKOD, etcetera is only INR 6.80 crores, which also includes claims to be lodged for the month of March.
Sorry, 6.60 crores, yes, okay. I'm sorry, can I just squeeze in the last question, which is the Staff costs have gone up by 22% in FY 2021? Any explanation for that?
Yes, yes. Last year, we had a profit of INR 13.13 crores only, and so there was no provision for bonus as per DP guidelines to employees. This year since we have profits, which are the normal profits as well as incremental profits over last year, so There is a bonus provision of about INR1800 crores for bonus for employees in this year. That is the primary reason for increase in the staff call.
But would this INR1800 crores be then Sorry, if you want to call it for this year only or would it cover something for last year also?
I'm trying to get obviously
the sense of the sharing stuff.
For this year only. And this is as per DP guidelines.
Thank you so much. Thank you so much.
Thank you. We request participants to restrict their questions to 2 at a time. We have a question from Sabri Hazarika from MK Global. Please go ahead.
Yes. Good afternoon, sir. I've got 3 questions. The first one is relating to your Did you mention that the EndNote tutoring pipeline has been completely done or some company pending right now?
No, no, no, no. It is not completely done. I said one section has been commissioned, but The other section, it is still to be completed. So we said that only in addition to Andor Manali's Per line of 22 kilometer which was commissioned in March 2019, the Ramnath Puram Fortigoreen section of 142 kilometer was completed in February 2021. And beyond that, Anur Thiruvallur section of 154 kilometer will get commission in June 2021.
And likewise in Agar 2021 some section and large section perhaps is expected in February 2022.
Okay, sir. Secondly, you have got like you have mentioned in your presentation 3 meter expansion from refinery that is Panipat, Baroni and Koyali, so all of these are under implementation, right? Nothing will I mean, they have been the work has been started in all this, right?
You said which? Which ones you said?
Palipak, Baroda and the third one is, I think, Baroni.
Yes. We are expanding Barani, which was approved earlier and Gujarat also, which was approved earlier and Panipat was approved recently. So work on all these projects is on.
And what is the time line for commissioning of this expanded capacity?
Yes, I will just tell you. Panipat is September 24, Gujarat is August 24 and Barony is April 23.
Okay, sir. And sir, last question is Sir, Zarekka,
I would request you to come back in the queue.
Okay. Thank you so much.
Thank you. We have a question from Mayank Maheshwari from Morgan Stanley. Please go ahead.
Sir, two questions from my end. One was regarding petrochemicals. Can you just give us a flavor of how has been the demand now for the month of May, and how has been your utilization rates on petrochemicals in the last quarter and what's been the run rate right now?
Yes. For Say for naphtha cracker, starting with naphtha cracker. Naphtha cracker only was affected in the Q1 of last year, But beyond that, whether it was Q2, Q3 or Q4 of the last year or it is April or May of this year, it is continuing with about 110 plus percent capacity utilization. So even in May, for the 1st fortnight, It is doing a capacity utilization of 113%. Similarly, our LAB plant at Gujarat in May is doing 111%.
PXPPA is little lower because perhaps there is a shut there was a shutdown, but in April it did 86%. And our PPA at PPA is lower at about 60% to 65% only because of limitation of the feed So for which we are taking up action to line up imported feet.
Okay. Okay. And sir, can you just also talk a bit about your plans on the because you have now EV charging stations as well as you are focusing a bit on hydrogen as well. Can you just talk about what are you kind of Thinking from capital allocation perspective next few years on these businesses versus the refining side of the business?
These EV charging stations or battery swapping stations, hydrogen in any case, is little distinct. These in any case are not going to take a major toll on the CapEx. The requirement of CapEx in these facilities is not much.
Okay. But is there a target that you have or if you want to go in the next few years on how much stations you want to put in, etcetera?
So the things are little unfolding actually and sort of capital allocation also keeps on getting revised, so I will not be giving any number right now. You must appreciate that since more than a year now, The situation is very fluid. So let it stabilize and then we will perhaps at a better time we will tell this figure.
Okay. Thank you.
Thank you, sir. We have a question from Mr. Amit Rustomi from UBS. Please go ahead.
Yes, sir. Good afternoon and thanks for taking my question. Sir, my request Actually pertaining to the buyback versus dividend decision, I think we have been paying a very good amount of dividend. And So would you give an update that any consideration being given to buyback of the case because some of the companies which have done it in the past, There have been a good performance of the top price as well.
You would appreciate that if there is an addition to this sort, we will first inform the exchanges.
Sir, I'm just distilling from like what are the factors which You are considering against the buyback. I think you must have given you a message to both the details of buyback versus dividend. But what are the factors which you think are against the buyback issue?
I'm saying if there is any Dishyam, We are supposed to inform the exchanges first.
Okay. So we are not considering any sort of co buyback or any
I think I have answered your question.
Yes, okay. And sir, second thing regarding the refining efforts. So we have seen that already Our refining integration is one of the best or highest in the industry. And in kind of current situation or in the longer term, If there is any impact on the product demand, then what is the rest to extend all the refining capacities at one go? And by the time this refining CapEx gets materialized, the outlook on the refining margins may not be very, very So what are the thoughts actually which are going into these projects?
And what kind of IRRs we are considering for determining the
Yes. So your hypothesis Regarding the demand or the refining margins, I do not know whether it's founded or unfounded, but we have from our own sources and studies A very favorable opinion about the demand as well as the cracks which will prevail Until the time it peaks, even in India, though globally it may take very globally it may take a little lesser time, but in India at least the demand is going And accordingly, we are expanding our refinery capacities to meet out the local demand.
Sir, what kind of DRMs that we can
get for the next quarter?
Mr. Rustigy, can
you please come back in the queue, Mr. Rustigy? Just
a related question on this. I'm just adding one And what are the DRMs you are considering for approving these projects?
So to better answer this, we Approve our projects only with a hurdle rate of 11% MIRR. 11%?
Yes.
Yes. Okay. Thank you, sir.
Thank you, sir. We have our next question from Mr. Vijayadar Dinde from ICICI Securities. Please go ahead.
Can you hear me?
Yes.
Yes. Can you give me your crude cost In March 2021, the average cost of your crude and the volume of crude which you had as of March 2021?
No, Ma, I will not be able to give you the price for March because that is something very, very confidential for us. But you have the regional pipeline for Dubai and print available with you. You can make a guess from there.
What about volume?
Volume of inventories is again a confidential information, but we generally keep around 15,000,000 to 16,000,000 metric tons of crude and products at any given time point in
What about the petrol diesel sales volumes
For the month of May, With reference to May 2019, we are minus 33% in petrol and minus 35% in diesel, industry wise I am saying, All 3 OMCs put together.
And in case of in April?
Just a minute.
On this May date of the 2M?
April, it was for petrol, it was minus 5% roughly. And for diesel, it was around 11% minus. We reference after 2018. Yes.
You have made it all up, Bhooman.
Pardon? Hello?
Mr. Vidyadhar? So I'll just check with his line. Meanwhile, I'll take the next person. We have a question from Manikanta Gare from Axis Capital.
Please go ahead.
Good afternoon, sir. Thanks for providing the opportunity. I wanted to check on One Press release, which has come couple of months back, where you have mentioned that Hydrogen generation units at the refineries will be sold and these are mentioned as non core. A little intrigued with that, Stephen, because hydrogen production became how come it became non core if it becomes Part of your long term energy transition strategy. I mean, does it mean that we are going to only retail hydrogen and not Focusing on production?
That's the first question, sir.
No, I don't recall that we have ever said that these are non core. We said we are going to monetize our hydrogen units to begin with and perhaps subsequently other hydrogen units at the refineries. These 2 are at Gujarat refinery. And the rationale of monetization for us is basically to leverage on the operational efficiency with which the plants can be operated by an expert in this field, any gas company, which is an expert of running these plants, and maybe produce even more than our captive requirement, which can then be sold as a merchant sale.
Understood, understood. So the article mentioned non core, so that's the reason why I was asking that. The second question is with respect to this Now 200 plus more containers that you're planning to either lease or buy out outright. If you buy out, what would be the CapEx? And once the purpose has been found out, Can they be repurposed for something else?
Yes, they can be repurposed definitely. And I don't think this is a time to discuss about the cost of these equipments Considering the grave medical urgency which is there in the nation.
Understood, sir. Thank you so much.
Thank you. We have our next question from Mr. Nitin Tiwari from Antique Stock Broking. Please go ahead.
Hi, sir. Good afternoon. Thanks for giving me the opportunity. A bit of correction over there. I'm with ES Securities now.
So, Ashish Yatin from ES Securities. So my first question is regarding CapEx. In FY 2021 2022, what is a broad makeup of our CapEx in terms of various segments, refining, marketing, etcetera. And related to that, basically, which are key projects, which are going on as of now and if we can give the investment and commissioning date for those projects? So that would be my first question.
So, Prabhav will be answering that.
Yes. I'll just provide you the breakup of this Major CapEx for 2021, 2022. So refineries we have around INR5,000 crores, okay. And pipeline again INR5,000 crores, Marketing is INR 6,600 crores and petrochemical there is INR 2,580 crores, Okay. CGB including JV, we have got INR 1500 crores and other JV projects we have got around INR 1,000 crores?
Right.
And then we have got some small below INR 25 crores lot of other projects, which is around 4,500 crores. Sure.
This is for 2021, sir?
2021, 2022.
No, Bekar, that you gave this for FY22, right? So for FY21, Similar?
Yes, for current year. Yes. Okay. 2021 refinery, again, we had 5,058. Right.
In line, it was 4,677 INR 4,677
crores.
Marketing, it was INR 6,124.
Right.
Petchem 2630, 2,630.
Right.
And CDD, City Gas Distribution, including JV and our own, we had INR 4,000 crores we had spent on CDD.
Sure.
And JV other JV projects which we have got 1351 And small CapEx projects which are below INR25 crores, INR3,149.
Right.
In a small amount, we have got R and D, 50 crores. We are building a new constructing a new campus, so 50 crores on that and E and P, 49 crores.
Sure. And sir, the second part of this question, which are the key projects which are going on right now, what is the intended CapEx and commissioning timelines? I'll
just read out the key just tell you the key major projects. 1 is part of the Hyderabad pipeline, which is scheduled to be completed 94% up till March 2021 and scheduled to be completed in March 2022. Another is Koyali Ahmadnagar Solapur pipeline. It is 85% completed up till March 21 and scheduled to be completed in February 2022. Extension of Paradeep, Palia Durgapur pipeline.
This is a pipeline up to Patna and Majapattu. This is This is completed up till 70%, 87% and is scheduled for completion on December 21.
Sure.
Actually, this is a long list. I am intervening. I am again Sandeep Kumar Gupta.
No, it's right. So, I
can say if you mention about the refinery is we are expanding our refinery to 25,000,000 tonnes, then we are expanding our Gujarat refinery to 13,700,000 From 7,000,000 to 18,000,000 tonne, Baroni from 6,000,000 to 9,000,000 tonne. We have a JV project with CPCL to put up The 10,000,000 tonne unit at Nagapattinam, 9,000,000 tonne size. Then we are We have a paraxylene and PTA project at Paradeep, ethylene project going on at Paradeep. We have acrylic soxo alcohol project at Gujarat refinery. So these are some of the refinery projects which are going on.
There is a whole list of pipeline projects which are also
I'll get off line then, sir. I'll get off line in touch with you and take this. And sir, my second point is not actually a question, it's actually a request and a very humble one. You guys have been sharing certain data points with us, which help us in our understanding of the company. Any entry gains on the crude and market It has been one of the key data points.
So I would just request that we continue with that. Although I know Sandd is not a satisfactory requirement, but I would request that please to continue with that this quarter because it helps us understand the dynamics every quarter on quarter rather more coherently. So just a request over there, you might introduce, please.
I have already replied. So let us proceed. Yes.
All right. So thank you. Thanks so
Thank you. We have our next question from Mr. Prouble Sain from Centrum Broking. Please go ahead.
Thank you for the opportunity, sir. Am I clearly audible?
Yes.
Yes. Just wanted to understand, you did speak about the demand scenario in April May. I wanted to understand with the what is the margin trend that one has seen in the Q1? Q4, of course, The numbers are there for us to see.
Has there been a significant change in fuel margins in April May, sir?
Yes. Generally speaking, they are on Improvement. So with sort of every passing day, we are seeing some improvement in the crack spreads of MSN And hopefully with this vaccination and opening up of the economy with lower number of cases, we believe the demand rolled over. In fact, the foreign countries have already opened. So the demand for fuel products in those countries abroad will drive the product crack spreads which will also benefit us.
Thank you, sir. I was referring more to the marketing margin part
of it in terms of retail fuel margins, How they have behaved and what do
you see for the Q1?
I'm saying the retail marketing margins are not They are sort of fixed and they are not affected by the movement in the prices internationally. It is the refining margins which get affected.
So So are we saying that the retail fuel margins have not changed at
all in 1Q versus 4Q, sir?
No, I'm not saying beyond this.
Okay. Thank you, sir. That's all for my sir. Thank you for the opportunity.
Thank you. We have our next question from Mr. S. Ramesh from Niravall Rang. Please go ahead.
Good afternoon and thank you very much. The first question is in terms of the investments you are making in your own CGD geographic areas as well as the JVs. When do you see some critical mass in terms of the CNG and PNG volumes? And what are the kind of addition you expect in terms of your profits, say, 3 to 4 years down the line?
Are you talking about the CGD?
Yes, sir.
Yes, the investments are on. And Right now, we will not be able to tell you the timelines presently, but I would just like to mention that the projects are on stream and they are moving according to the timelines maybe a bit here and there. But otherwise Since unless the projects are completed, we would not be able to tell you what exactly how it is going to pan out.
Generally speaking, these are CGD investments takes CGD actually, fratification takes longer time, given PNGRB allows some years for completing the minimum work program, etcetera. So it will depend upon the that time of sort of laying physically the infrastructure as well as the availability of the trunk line to reach Yes, to those geographical areas. So we are first concentrating on, say, CNG and sort of sourcing wherever possible CNG through gaskets also, so that we can sort of capture such opportunities.
Okay. And the second thought is on the refining side, we hear There are a lot of capacity closures and at the same time there are refineries which are getting into petrochemical. So in terms of your own understanding of the numbers, what is the kind of Closure of refining capacity, you can share with us over the next 1, 2 years. And how do you see the light or Sweet sour differentials moving, given that there is an increase in the supply of OpEx and Iranian crude.
So none of our capacity is getting close. Perhaps you are talking about some facilities world over. So we are also aware of such capacity closures only from media sources only. So I would not like to dwell upon that. None of our capacity at least is getting closed or in India any capacity is getting closed.
And regarding the demand and crack scenario, I Answered a few moments back also. We see the demand to be very robust and the crack spreads also to be healthy enough. And based upon that only we are approving projects with a minimum hurdle rate.
Okay. One last thought, in terms of the integration with Petrochemicals, we're seeing pretty much all oil and refining companies looking at petrochemicals. So while there is growth in demand, Is there a risk that there will be excess capacity somewhere down the line and remember your feedstock cost economics may actually bring down the Pasta Production, isn't there a risk that spreads will fall and jeopardize the return from these projects? What are your thoughts on that?
No, based on our studies, Whether in house or through consultants, we see the demand in absolute terms also growing and our expansions will support that demand. Though the market share of the petroleum fuels may go down in long run, But perhaps the absolute volumes will keep growing and hence accordingly we are going ahead with our expansion plan.
I was referring to the petrochemicals business. If you see oil companies and petrochemical refining companies are all trying to Capture the petrochemical value. So when you see everybody putting up these projects, assuming even if we assume that there is growth in demand, isn't there a risk of excess supply
Definitely not. India is still India's average consumption is much, much lower than the world average. And there is a huge potential for growth in the petrochemical demand in the country.
Okay. Thanks a lot. Wish you all the best. Thank you.
Thank you, Mr. Ramesh. We have our next question from Mr. Sumit Rora from SmartSun Capital P. T.
Limited. Please go ahead.
Yes. Hi, sir. Very good afternoon to you. Sir, firstly, I would like to congratulate you on fantastic set of results. You have done a remarkable performance In such a challenging and tough year and also on a positive front, I would like to wish the entire IoT team to please be safe, to take care and to be healthy.
Sir, secondly, now coming to my question, sir, one, I would like to ask you that, you mentioned you added 3,000 outlets. So sir, is that basically, are we going to add 3,000 outlets every year or we've added this as a one time? Sir, secondly, I would also like to highlight to you that IOC is truly a gold mine. And the reason I use this is because you have a dividend yield Of 11.5%, you have a 23% earnings yield. Sir, no company in Nifty, no company in India has this kind of financial weakness.
Okay, I would like to say this on record that you are actually one of the best companies India has ever produced. But sir, unfortunately, this is not translating into a market cap phenomena. So if you see after reporting the record performance you have reported yesterday, In spite of that, today, the market is not seeming to give it a thumbs up, which is absolutely ironical and strange. So sir, I would really wish and I would request that The IOC board must seriously consider value unlocking themes because this company is definitely not worth lower than VPCL's market cap. Today, sir, BP sales market cap is equal to our market cap, okay, and we are 2.5 times of our peers.
So I would seriously request if some kind of value unlocking happens in terms of some division is hiked off or some something I mean, that is something which obviously is missing. So I would seriously recommend if that is looked into because ultimately this is Government of India well. 1st, I can be coming to the point is on the crude point of view, I get to understand that there have been some clashes on Bloomberg today that Iran may come back into the oil market. So will that actually be beneficial to IOC? So will we start buying crude from Iran?
And if yes, then I mean, does Iran give at some kind of discount to our company, sir? Thank you so much.
So first on the retail outlets. So yes, we have this plan going forward also at least in the near years because we feel that somehow we have Not put up enough retail outlets compared to our market share. So we will be putting these ROs and this does not We operate in various models A site RO, B site RO. So not much of a concern on the number of ROs. 2nd on the market cap, I take your suggestions for consideration.
Thank you very much. But on a lighter note, the market depends The IOC share price depends upon your analysis and your feedbacks. But you must also appreciate that even yesterday and even today, The market is in red and despite that IOC share is performing. So I think that is a good sign. What was last?
Iran crude.
On Iran crude, we were buying Iran crude earlier also before And before sanction and I do not have any doubt why we will not buy Iran crude because that favors Indian refining system also If the sanctions are lifted, so we will definitely buy. Now as far as commercial terms are considered, since there was a considerable gap in between, We will have to see how what kind of commercial arrangements are made with the national airline company, which Supply is the crude once it is to reincharge. Perhaps it is too premature to comment about that at this stage.
Sure. And Salazar, just one thing, if I may add, if I heard you correctly, you said that the total outstanding of government receivables is only INR 6.80 crores. That's what That's what I'm saying.
Yes, I repeat, it
is only INR 6.80 crores.
That's wonderful news, sir. Thank you so much and wish you all the best and please stay safe in these times, sir.
Thank you.
Thank you, Mr. Rora. So we have Mr. Vindyadath Nindy back on the call. Sir, please go ahead with your question.
Yes. Can you hear me?
Yes.
Yes, we can.
Yes. So, yes, my question was on petchemicals. So, could you give us some guidance on Possible volumes of petchem in FY 2022 and what is specifically on the PP side because I think most other Products are operating at high levels except for PXBT, which you mentioned. So PP is the one where you were talking about sourcing properly into Bump up your capacity utilization. So if you could give us some indication on that for FY22?
So
presently, the PP Paratip is operating at about 60% to 65% capacity levels in April May. And we are trying to ramp up this capacity, but that will depend upon the feasibility of importing the feed for which we are trying. Beyond that, Only MEG plant will commissioned during the year at Paradev. And there are a lot of other projects which are in stream and which will take perhaps a couple of years to get commissioned and then start producing. But as a guidance, I can tell you that our plan is to take our petrochemical integration ratio to about 14% to 15% by 2030.
Okay. Thank you.
Thank you. We have our next Question from Mr. Maulik Patel from Equis Securities. Please go ahead.
Thanks for the opportunity. Can you just share the progress in terms of volume at Inor and what is your expectation on the ramp up?
Yes, just a minute.
You're talking about for the full year or the quarter, sir?
I talked about April 21 level.
The current level.
Maybe the full year figures we will give you separately. I do not have immediately.
That's fine. Thank you, sir.
Thank you. I would now like to hand over the call to Mr. Harshraj Agarwal. Please go ahead, sir.
I would like to thank everyone and the management for taking time to attend the call.
Thank you, everyone.
Thank Thank you from Indian Oil
and thank you to everyone for this conference.
Thank you, sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using and Service. You may please disconnect your lines now. Thank you and have a great day.