Ladies and gentlemen, good afternoon, and welcome to Indian Oil Corporation Limited Q1 FY 'twenty two Limited Call organized by Batliwala and Karani Securities India Private Limited. At this moment, all participants are in 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.
Harshraj Agarwal. Thank you and over to you sir.
Thank you. Very good afternoon to all on behalf of Batya Rankarani Securities. I welcome you all to the post season conference call with the management of Indranil Corporation. It gives us great pleasure to once again host the management for this post result discussion. I would now like to hand it over to the management for initial remarks, post which we'll open the floor for an interactive session.
Over to you, sir.
Thank you, Mr. Hartraj. 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 and Mr.
Ruchi Ragharwal, Chief General Manager, Corporate Finance and Treasury. Along with them, we have got Mr. KSKsone, DGM Corporate Finance Mr. Subbujit Thakkar, SFOM, Trisley and myself, Prabhat Simatthinka, General Manager, CRZ. To begin with, Datta Finance will briefly touch upon the quarterly performance highlights And then he will take the question.
Now I'll request that the Finance Indian Oil to address the meeting.
Yes. Good afternoon to you all. I hope you are all safe and sound and have received the updates post the declaration of the results. I have touched upon the highlights to begin with. As the country businesses decline of the deadly COVID-nineteen and economic activities are returning to normalcy.
Indian Oil being the energy of India stands steadfast and more future ready to meet the energy demand of the nation. When the 2nd wave of COVID-nineteen dragged havoc across the nation, in an all went beyond business priorities to support fellow call. Used with the MEG plant at our Palipas refinery compound plant to produce medical grade liquid oxygen for the masses. Several tankers of Obli ISO Containers on Liquid Oxygen Transportation had been deployed across the country. In our quest of differentiated offerings for the customers, Indian Oil launched Extra Green Diesel.
Available at select stations, this new age fuel utilizes 7% biodiesel blending to offer an eco friendly Energy solution for our environment conscious customers increases fuel economy by 5% to 6%, lowers noise and offers better combustion and results into reduced carbon emission. Our customer oriented matter of product innovations in the recent past is starting from rollout of India's first 100 obtained petrol XP100, launch of XP95 to reach out for the crucial mid premium segment 100% conversion of Laila and relaunch of Chotu, Indian Extra Page with better fuel efficiency, newly introduced rust free composite LPG cylinders which add to the aesthetic To the digital initiatives like LTV Booking, Prope, Alexa and this call, these all efforts Evans Indian Oil's commitment towards offering higher customer delight. You all will be delighted to note that over 30,000 of Indian Oil's retail outlets are now automated, ensuring correct quantity and correct price charged through real time monitoring. In another such effort to enhance customer delight, Inanna launched diesel at door such service in 20 liters of a jerry cans in Karnal Haryana for the first time. We have also commissioned 83 mobile dispensers during April to June 21, which is the highest in the industry.
With this, we have 7 20 mobile dispensers on a pan India basis. While lot of efforts are being made in offering newer and differentiated products in conventional oil and gas portfolio, Indian Oil is also focused on harnessing clean energy and cleaner future. Collaborative ventures with Israeli set up Finergy to commercialize the aluminum air battery technology in India, setting up ethanol plants for using indigenous feedstock, exploring unconventional areas like Converting used cooking oil to biodiesel, harnessing hydrogen as the ultimate sustainable fuel of the future are among some of the initiatives for achieving sustainable business. Indian Oil's pioneering efforts to usher in hydrogen economy in the countries now globally acknowledged. Indian Oil was recently inducted into the World Hydrogen Council as a supporting member of the council.
And the major update on this front is the nation's first green hydrogen plant that Indran Oil intends to build at its Makra Refinery. As part of the continuous efforts to diversify crude basket, For 2,900,000 metric ton of U. S. Crude blades on an optional basis for the current years, continuing the previous year's experience. Talking about numbers, the average price of crude that is Indian market during this quarter was at $67.50 per barrel, An increase of 12% from the average price of the immediately preceding quarter that is $16.45 per barrel in Q4 FY 2021.
If we compare on a corresponding quarter basis, there is an increase of 121%. With respect to the crack spreads of the products with reference to Indian basket, MS cracks have improved during the quarter at $7.57 per barrel as compared to the preceding quarter, which was $5.39 per barrel. Cracks are also higher than the corresponding quarter of FY 2021, where it was only $0.70 per barrel. For HLS, the crack spread during this quarter at 4 point $52 per barrel has been higher as compared to the preceding quarter, which was $3.78 per barrel. Cracks are also higher than the corresponding quarter of FY21, where it was only $3.38 per barrel.
Now as far as petrochemical spreads are concerned, the Spread for polymers in this quarter at $6.20 per tonne was 10% lower than the previous quarter, which saw $6.90 per tonne and about 7% higher than the corresponding quarter of FY 2021 where it was only $5.81 per ton. In case of PTA, the spread during this quarter was near about the same as was in previous quarter, around $200 per tonne. However, this was 19% lower than the corresponding quarter of FY 2021, which was at $2.48 per tonne. With respect to MEG despite in the current quarter at $56 per tonne was about 55% lower than previous quarter and 72% lower than corresponding quarter of FY21. We expect that the recovery of PTM and media cracks perhaps the petrochemical performance would be still better.
This quarter, we have registered a PAT of INR 5,941 crores as against INR 19 INR 111 crores in the corresponding quarter of FY21. With vaccinations being rolled out across the globe, we are expecting improvement in refining margin environment going forward and hence better tax in the periods took down. Revenue from operations during the quarter is at INR 1,550 56 crores as against INR 1,63,606 crores in the preceding quarter. Now let us see the verticals, refineries. The throughput during the quarter was at 15,700,000 metric tons with a capacity utilization of 96.2%.
The throughput for preceding quarter was 17.6 MMT with a capacity fluctuation of 102.4%. Reports were mainly impacted due to plant shutdown and fall in demand because of second wave of the pandemic. IOC Refineries registered a GRM of $6.58 per barrel during the current quarter. The CPE GRM for the quarter is $2.24 per barrel and And our refineries have thus outperformed the benchmark Singapore GRMs during Q1, which was only $2.05 per barrel. On the pipeline, the capacity utilization was about 83% during this quarter as compared to 92.5% in the Q4 of FY20 21.
And our pipelines continue to generate stable returns giving an EBITDA of about INR 1575 crores during this quarter. On the marketing, the sales were 18,820,000 metric ton during this quarter as compared to 20,820,000 metric tonne in the preceding quarter. And petroleum sales during the corresponding quarter of FY 2021 was at 15,480,000,000 metric tonnes. The marketing EBITDA for this quarter stood at INR 5,425 crores as against INR 3,440 During the previous quarter. On petrochemicals, the business reported an EBITDA of INR 1989 crores as against INR228 crores in the previous quarter, which was mainly because of very healthy polymers cracks.
The borrowings as on 30th June 21 stood at INR 85,720 crores as against INR94,413 crores on 31st March 21. And these figures do not include release obligations pursuant to revise I end my briefing here and will be glad to take your question. Thank you very much.
Certainly. Give me few seconds. Ladies and gentlemen, we will now begin the question and answer session. 1 on your phone and await your turn to ask the question when guided by me. If your question has been answered before your turn and you wish to withdraw your request, you may do so by pressing star 1 again.
Participants, please restrict your questions to maximum 2 at a time. We have first question from the line of Mr. Kirtan Mehta from Bank of Baroda. You can go ahead.
Thank you sir for this opportunity.
Go ahead.
Hello, is this audible
now? Yes.
Could you give me as an idea about the inventory gains on the marketing side, some color on it? Last Quarter, you have sort of stopped giving us an indication about the inventory gains on that side, but any color would be useful.
No, sir. We do not want to disturb the factors which we started last quarter. And there are a lot of things, as I explained during the last quarter, also there are a lot of things which impact the results company and seeing any particular information in isolation may not be helpful. So we are not sharing such information.
Mr. Mehra?
Yes, ma'am.
Yes. I
was asking about the project progress and particularly the Projects which are due for commissioning this year, is there any impact due to the sort of the wave 2 that we have noticed?
No. You must be aware that we exceeded our CapEx target for last year. And so that means all our projects were running perfectly okay. Minor maybe a minor slip somewhere, but there is nothing worth mentioning. And this year also we are committed to meet our CapEx target.
So no apprehension on that
Fine, sir. I'll come back in the queue. Thank you, sir.
Thank you, Mr. Maitha. We have next question from the line of Mr. Varadaran Shiushankar from Antique Stocks Booking. Please go ahead.
Thank you for taking this opportunity. I just wanted to clarify this $2.24 the GRM which you are referring to, is that comparable to Singapore number which you used to give earlier, is it Just for the time difference?
So as Madhav Kap, when you say it is comparable to Singapore margin, it is on the same basis. That means it is the current price GRM. In our in their sum, it is always a current price GRM only. It's vertical GRM, Singapore Margins, whereas in our case, we set off the inventory gains and the price lag impact to make it current price GRM. However, there is a change there is a difference in the yield.
So there is some yield which is currently considered in Singapore benchmark margin workings, Whereas in our case, it is the actual lead. So those are the only differences.
Understood, sir. Secondly, like on this new energy initiatives, Would you be able to give some kind of a CapEx outlook over the next All the new energy initiatives, clean energy initiatives, your hydrogen, your battery, all these corporations, Any CapEx numbers which are available?
CapEx numbers.
Yes. Any CapEx expenditure you are planning?
We are coming up with 2 ethanol plants, you must be aware, That is I think INR 700 crores each that is prepared at Panipa 2 gs and 3 gs. Other than this CBG, you must be aware of CBG, Compressed Biogas That 5,000 plants are being commissioned by Government of India against which Indian Oil has already these are not directly being done by Indian Oil. However, we have tie up agreements with them. So this will be I think together this is going to involve because each plant will be having a CapEx of Ex of around INR 50 crores. So, INR 5,000 tranche you may calculate.
And then 11th, we have already given this Yes, tons of appointment for 1100 plants for CBG. Other than this, we have got EV stations we have already created in our 2,257 EV stations have already been created at our retail outlets. And further, we have plans of 1800 EV stations,
Actually, all these investments in these areas, They are off in front of what CapEx we are used to do. So that is why we do not Pay much attention to the CapEx in these things. You have to see the big picture. The big picture is that we are in eye off with the Israeli company synergy. And we are working on aluminum air battery technology.
And if that technology Concept is proven. We have an understanding of proving that with 2 vehicle manufacturers. And if that is successful, then we have already registered a company in India for manufacturing the aluminum air battery. So that is the big picture if that happens. We will perhaps be the leader in the technology in this area.
Yes, sir.
Yes, please ask.
Go ahead, please go ahead.
And Similarly, in other areas also, we are seeing the transition and we are trying to make a pitch So that because this is the transition, if there is any impact on the fuel sale, then we can make up that loss through these new energies. And in hydrogen also, we are making we are working on lot of, say, Methods of hydrogen generation. On pilot basis, our SCNG plant at Rajkhat is proven now. And now the fuel segments also are in public domain now. And we are also trying to Run some vehicles on hydrogen generated at our Gujarat And the buses will run to Statue of Unity and Sawamupi Ashram from Boga Refinery.
Similarly, we are also planning to run buses from Delhi to Agra. So These initiatives we are taking and now with our membership in the Hydrogen World Council, We will further strengthen our initiatives in this direction.
That's fine. Thanks. Just one small Seeing on this Natra Hydrogen plant, any insight as to what is the size and looking at any kind of NDA you are currently planning or it's more like That's only in the planned stage.
So we have conceived this and we will definitely do it, but it is on the drawing board stages as of now. We want to we have windmill power elsewhere in the country, which we will sort of wheel back to Makro Refinery and generate green hydrogen from Makar Refinery. But the CapEx and the capacity, etcetera, is still being worked out.
Thank
you, Mr. Vardrajan. Before taking the next question from the line of Mr. Proble Sin, We have question from Mr. Probleson, which is from Centrum Broking.
Please go ahead.
Thank you very much. Am I audible, sir? Yes. So I just wanted to you mentioned about the fact that FY 2022 no delays are envisaged in any of the projects. I just wanted if you can just briefly reiterate the major projects that are being held and the CapEx guidance for this year, sir?
Yes, I'll I'll I'll I'll just tell you major There is one, to start with this pipeline project, Paravik Hyderabad pipeline, which is under completion, almost 95% is completed Then there is a Koyali Ahmedabad Solapur pipeline, which is under progress and almost 87% to 90% is done. Then there is the extension of Parabi Kalviya Durgapur pipeline, LPG pipeline to Patna and Majaparpur. This is also 90% completed. Then ethylene glycol project, MEG project that is at Farha week, which is also 90% And then we have got Ennore Bangaluru from which I am modulari to the coating and LNG pipeline, Which is under the 57% to 90% completion. So these are the major projects that will come up during this year.
Other than this, we have got a number of small projects which are undergoing and that details can be shared separately.
Sure. And what's the overall CapEx that is planned for this year,
This year's CapEx plan is around 28,500.
28,500. And can I know how much of marketing outlets and infrastructure is part of this, sir?
Marketing total around is INR 6,600 crores. And if you want other projects maybe refinery INR 5,000 crores, 5 times INR 5,000 crores and Petchem is INR2500 crores and balance maybe some amount in JV, we have got joint ventures, so maybe and some gas infrastructure will be
So the major major thing which is expected in this fiscal is basically the pipeline, the natural gas pipeline in the southern India, which is slated to be commissioned by February 2022. So that will be a significant thing. And second is the MEG United Paragitathani, which will get
Got it. And so one last question, if I may. What sort of Post the gradual reopening that we have seen in most major cities in from July onwards or June onwards, what sort
of fuel consumption levels are
we seeing in the current quarter In July August, any sense you can give us in terms of as a percentage of pre COVID levels or whatever is comfortable?
So for July, The MS consumption as compared to July 2019 has Seen a growth of 3.5 percent compared to July 2019.
Got it.
Okay. But then diesel It used to be a cause of worry where the degrowth is 11%. So diesel sales are still short of July 2019 levels.
Okay.
And the same is the case with ATM where the levels are at minus 53%. LPT has seen a robust growth of 7.5% With respect to July 2019. So with the opening of economy, we believe that ATF and diesel should also recover handsomely.
So, sir, for diesel, is it the industrial demand that is still basically the worry or even diesel transmission demand?
It is the public mobility which is Not there. And that is taking its toll on the diesel consumption. So the moment the public mobility starts the buses, etcetera.
Yes.
And definitely there can be a small impact because of industries also, but then I think industrial is more or less okay. So it is mainly the public transport, STUs and private school colleges are not opened, so that consumption is not there. So those things are because railways are not running to their normal level. These are
All right, sir. Thank you so much for
the detailed answer. I'll come back if I have more questions. Thank you.
Thank you, Mr. Sen. We have next question from the line of Sabri Hazarika from MK Global. Please go ahead.
Good afternoon, sir. Just one question. Your Chairman mentioned about the Petronas JV being It's funded in scope to include retail outlets and probably you are looking to launch a separate brand altogether. And he also mentioned that some of the existing retail outlets may be monetized through this way. So can you elaborate on this?
What kind of arrangement is this? Or Are you looking to like monetize retail outlets also going forward in the going forward?
We have a joint venture with Petronas of Malaysia since 1998. So it is more than 20 years that JV is operating, but we were Limited only. This JV operations were limited only in the area of LPG, terminaling and walk in, etcetera, only at Haldia and Lecron at Endor. Now the market is opening up, the private players have been allowed wherever their network is more than 250,000,000 gross. And we find certain limitations because we have to allot the dealerships through lottery system only.
You are also aware of the wayside amenity facilities coming up in the national highways where we need to Engage somebody whom we cannot perhaps allot throughout week being a public sector. So we are now we have decided along with Petronas that we will expand the operations of this joint venture with them in the name of IPPL. We will expand their horizon to fuel retailing also. And this encompasses the whole lot of opportunities. It could be new areas identification of new areas and setting up of retail outlets by that company or it could be wayside amenities, etcetera Or it could also be sale of certain existing retail outlets to them, which is akin to monetization.
So all options are open to us, And we are detailing on these aspects.
It will be somewhat similar to what Reliance and Vitesse Petroleum has done Regarding JV. Okay, sir. Thank you so much.
Thank you, Mr. Hazarika. We have next question from the line of Mr. S. Ramesh from Nirmal Bank Securities.
Please go ahead.
Good afternoon. Thank you very much. So can you give us your thoughts on the Current spreads in refining and the petrochemical spreads?
So petrochemical in the refining First, the MS cracks are now at a decent level of about $7 per barrel. But the ITC cracks are still impacted and are lower at about $4 to $4.5 per barrel only. Now MS consumption is back to normal levels and that is why the cracks are cracks have improved off late. And diesel crack is still impacted that is why the diesel We hope that with vaccination happening all over and opening up of economy, Once people realize that post vaccination perhaps the impact of any such infection is not that severe, We believe that these consumptions would go up and the cracks will also correct sharply. So they should move up.
In petrochemical also, we saw weaker cracks as compared to the last quarter, and We expect that petrochemical cracks should also improve especially in fact all the areas, polymers were lower in this quarter, PTA was lower and MBT was also lower. So we expect these crash should answer it over.
Yes. So Saurav, What is the current status of the polypropylene utilization in Panafat? We were planning to import propylene and do that. So what is the status now?
So that did not materialize because that was not found So our capacity utilization is still something which we are working upon. It is low at About 60%. It is still low. We could not that plan did not materialize.
So
We are working on various means how to improve that capacity utilization.
Thank you very much.
Thank you, Mr. Ramesh. We have next question from the line of Mr. Nitin Tiwari from Yes Securities. Please go ahead.
Hi, sir. Good afternoon. Thanks for giving me the opportunity. So my first question is related to The inventory levels that we have for food and refined fuel, so what are the number of days of inventory that you are holding in 1st quarter and how does that compare with the average number
of days we usually hold? We roughly at any given point in time hold about 3,000,000 tonne of inventories, which consists of about 50% crude, 50% product and intermediate. And you can calculate the number of days Based on that.
Right. So that was so we were maintaining our average level in this quarter as well. Right. And second question is regarding, sir, the fuel swapping arrangement that we have with other oil marketing companies. So of the entire fuel sales that we have in any given quarter, how much of that would roughly be swapped with other companies?
No, but how did you get this information that we start with others?
Sir, this is a General understanding, I mean, that we have from some time that there is a few swapping arrangement which exists with other oil marketing firms. Correct me if I'm wrong word.
Yes, this is there maybe, but because of refinery cannot be everywhere. So some places we have got refinery, some places will be ONC must be having refinery. So, for the last professional cost, this is being done. However, the volumes and quantity may not be at this time, may not be available with us.
This is not any stocking arrangement. This is a trade arrangement. We are at some places we give to other Companies and take from those companies at some of the place where we do not have refineries. So this is a delayed arrangement, but not a stopping arrangement.
So Anshul, my question was related to trade arrangement only if we can get Some idea around let you know what is the quantity involved which is there in this trade agreement. That's the only limited question.
No, I do not have that information right now.
Right. So secondly, my second question is a more broader question in terms of the outlook for petroleum products. As you mentioned at At the beginning of the call that you've taken number of measures in terms of basically green energy projects and sustainable development. So how do you see the demand of petroleum products standing out for India over next decade? And in that backdrop, Like, would you believe that refinery expansion projects and investing in refinery expansions make Sales, because it's an oil perspective that maybe like the petroleum demand is sort of reaching peak and there is a lot of There's a lot of conversation around penetration of EV and like green flues like ethanol and
biodiesel and all that. So if
you can give us some perspective as The market leader, industry leader that what are your thoughts?
So we have mentioned it earlier also that We have very carefully taken decision for expanding our refinery capacity. We have estimates from various As you see, then we have our own estimate, which says that MSH as well as HSP growth is going to be there for at least a decade At a level of about 5% to 6% or 4% to 5%. So these demands are going to go up for enforceable future. And transition though will happen, but It will not assume that scale or will not happen that soon, which will sort of render any of our projects And unviable or uneconomical. So because the absolute energy demand of The country in the wake of the growth which we are anticipating is going up.
So the consumption of fuel products will also grow. Their growth speed may perhaps slow down a little bit, maybe after a decade or so. But as of now, we do not have any apprehension.
Thank you, Mr. Tiwari. We have next question from the line of Mr. Manikanta Gare from Axis Capital. Please go ahead.
Yes. Good afternoon, sir. Thanks for providing the opportunity. Just a couple of questions from my side. First one is the other EBITDA, it Looks like there is a fall from last quarter.
It was INR927 crores last quarter and it is INR2 11 crores. Where is this impact coming from for other Savita, sir? That's my first question.
Vishal, get back to you. You can go ahead with the second question.
Okay. So we have currently 257 charging Station, I know, which were mentioned by the other retail outlets. So what is the amount of CapEx Required per charging station here. And earlier, I think last year, there was an MOU signed with NTPC Powergrade on the Itech Mahindra and Tata Power For this recent charging point, so like what is the status of this MoU and what is their involvement here? That is my
recommendation. Yes, charging station 1st charging EV charging second, the CapEx, especially we are not at this Moment having a big effect, but that may be ma'am, we should not give figure, maybe we may not give that. But the thing is, Regarding that, maybe a lot of things are going on. However, that is maybe at an appropriate time that will come out from our company will disclose that.
Okay. So but is it fair to understand that the entire CapEx is being done by us as of now for the charging points?
As of now, it is being done by IFC only, by IFC only.
Understood. So just last question from my 30 seconds, please. What is the current utilization of the refinery, sir? Because I think yesterday on Friday, Chairman sir mentioned that current refinery utilization was at 90%. Is that the case?
Yes, it is around 90% for the month of July.
Okay. Is it because the And then it's already been taken or what is the reason there? Because the demand is increasing only after the wave 2. So why the regulation has fallen?
It had we can run the refineries even at a higher level, but then it has to correspond to the demand also. Diesel, you are aware, is our major project product. So the refinery run rate is also a factor of the demand, which
Understood. Thank you. Thank you so much, sir.
Thank you, Mr. Garik. And get in the queue. We have next question from the line of Mr. Varadaran Shivshankar from Antique Stock Broking.
Please go ahead. Thank
you. Thanks for the opportunity again, sir. Just this LPG claims with the government, I know these numbers are very, very small now. However, Conception, we just wanted to understand for the current quarter or 1Q, have the claims been filed or the government paying it? Any update on that?
So I think this will be sufficient to tell that we do not have any outstanding claim pending with Government of India as of now.
Okay. If I missed from a little more, was there an underwritten reason on queue?
I'm not giving that detail,
but
you can take that as on 30th June, There is no amount which is outstanding from Government of India due to these monthly
Thank you.
Thank you, sir. We have next question from the line of Mr. Widyadar Dheinde from ICICI Securities. Please go ahead.
Thank you. My first question is on what is your cost of your crude in June, whatever is your crude inventory in June and what is that of cost?
So Around 30th June, the valuation rate was 63.75. Sorry, sorry, just a minute. 70.4.
Yes, yes. Thanks. And the second question is regarding What was mentioned earlier in the call regarding the compressed biogas, it was not very clear. He seemed to suggest that You are going to invest in 1100 plants.
And so, INR 50 crores is the
cost of the plant, I suppose what are what is going to be your investment? The
amount of that was Investment is 0. Government of India wants to put up 5,000 such plans by 2022, 2023 perhaps. And the oil companies have been asked to issue letters of intent to the intending entrepreneurs So that we can give them the price and the offtake assurance.
Okay. So it's more about offtake.
Yes, it is about offtake only.
No real CapEx in CBG?
No real CapEx is involved in these plans.
Okay. That's it for me. Thanks. Yes.
Thank you, Mr. Hinde. We have next question from the line of Mr. Sumit Rohra from SmartSun Capital Private Limited. Please go ahead.
Mr. Sumeetra Ora, your voice is not audible. Yes, yes. Yes, you can go ahead. Yes, sir.
So firstly, sir, many congratulations on a great set of results and hope you and the team and everyone at IOC are keeping safe. Sir, now I have a couple of things which I wanted to ask you. So, sir, firstly, our marketing EBITDA has been very healthy at about 5,400 crores. So sir, just to understand, give or take 5% year or there, can we expect that We are on course now to do about a INR 20,000 crores EBITDA in terms of marketing. So secondly, I wanted to Q on this, which is very briefly about was the Indian Oil Petronas JV on the fuel detailing part.
So today, I mean, Indian Oil has about 32,000 outlets. And there is one company already which has done some deal with a foreign company and that valued at about 7, 8 about 10 crores For outlet. So even if you assume at about INR 5, 6 crores an outlet, so sir, our fuel retailing business will be something like INR 2 lakh crore, which would be 2 times the market cap today what we have. So if you can turn to this highlight and make us understand that our business is very valuable in terms of all the verticals we have. It's refining, pipeline, but the fuel retailing is the, I think, the most price progression in our crown.
So if you can just help understand a bit on this venture and can we unlock some value from this, sir?
Yes. So first was what?
So the first part was the marketing EBITDA.
Marketing EBITDA. So I believe that We can have some upside going forward on the marketing EBITDA side. This is slightly higher than the perhaps the last quarter because there were certain year end provisions which were there On the marketing side in Q4. But going forward, these levels are definitely normal, and I see some upside in these levels also. As far as the IPPL joint venture announcement is there, As I explained in response to an earlier query, we have all options open.
So we can have new retail outlets being set up by That joint venture or we can have the wayside amenity dealership being awarded by that company on the various outlets which will come up on the national highways as per their policy. And we can also monetize some of our Retail Outlet. So all those options are there with us and the detailing is happening. And I Fully agree with your view that there is a lot of value. However, IOCL has not unbundled it as of now.
And all lot and lot, saw and barrel, we do not intend to do right now. But yes, we Definitely echo the same sentiment that we have a lot of value in the company in various Segment of the company. And perhaps the market price, whatever is there is not the correct reflection of the value.
And sorry, just for one, I mean the thought process which I had, was that if you can just include a detailed presentation Of our different verticals. And if you can just give a value which is like a replacement kind of value, so then kind of people I mean, investors will get Better sense of how valuable our company is. So that will kind of, I think, add huge value for all stakeholders. So if you can just have that done because then People will get a better sense of what actually IOC consists of. Okay.
We will consider that.
Sure, sir. Thank you very much and wish you all the best, sir.
Thank you.
Thank you, Mr. Rora. We have next question from the line of Mr. Vivekananda S. From Ambit Capital.
Please go ahead.
Hi, thank you for the opportunity. Couple of quarters ago, government had suggested monetization of PSU assets Through the Invict model, I believe management had commented a little bit on this, Particularly with respect to certain assets like pipeline or hydrogen projects that we have. Any update on this and Potential time lines as well as the kind of assets that we may want to monetize via Invess and the Proceeds, likely proceeds that we target?
As per our plan which has been submitted to our ministry, We are in the current year planning to monetize 2 of our hydrogen generation units at Gujarat Refinery. And based on the success of that perhaps 5 more plants in the next year. So that is our monetization plan as of now.
And sir, just a follow-up, how much of your total hydrogen production Are you going to monetize this year?
These two clients are of what capacity, 75 Just a minute, I'll just tell you. I will we will Yes, you will read separately.
Okay. Thank you.
Thank you, Mr. Vivekananda. We have next question from the line of Mr. Iqbal Khan from Edelweiss A&C. Please go ahead.
Hi, thank you for providing me this opportunity. Sir, one simple question I have. We have the operational highlights wherein you have mentioned the capacity utilization at 96%, Refinery utilization. If you remember, in the last quarter, you had mentioned the refinery utilization for
the month of April
was 96 And followed by May, it was 84%. So, does that mean that the refinery utilization in June has gone more than 100%? Or I mean is my understanding correct on this or the operational highlight number which you have mentioned, 96% utilization during this quarter, is that right or wrong? So this is my question for this.
It is right.
So you mean in June, the utilization level went above 100%.
I do not have a number for June as of now. Okay. But the 96.2% is correct.
Okay. Thanks, sir. Yes, that's the question from my end. Thank you.
Thank you, Mr. Khan. We have next question from the line of Mr. Sevam Bajaj as an individual investor. Please go ahead.
Hello?
Yes. Amu Otavik?
Yes.
Yes. Hi. Good afternoon, sir.
Good afternoon, everyone. First of all, I'm like proud to associate with IOCL. I've recently added IOCL into my portfolio. I have few suggestions in this call and a few questions also. So I'll proceed with the questions.
Questions first. Sir, do we have any monetization model on the EV charging station On a per charge basis? No,
we have not put up many EV charging stations. So it is a question
Not all this now, but in the
future, Aarti, do you can we consider that as well?
We will see that in future. I'm saying it now.
Okay. Okay. And sir, also as one of my suggestion, can we can the IOCL also have its EV financing business also because the EVs are getting EVs are coming at a costlier price. So for affordability, we can also have Business for EV in the near future, if this can be taken as a suggestion.
We do not have such plans.
Okay. Okay. Also, one of my suggestion was for the Indian business. I can see that There are certain problems while linking the LPG ID in the Indian Oil app. So is this that Can be taken online and the Aadhaar operation of the ID can be taken online?
It will be much seamless.
You can send your suggestion to our team. We will explain.
Okay, okay. All right. Thank you so much, sir.
Thank you, Mr. Bajaj. We have last question from the line of Mr. Kishan Munra from Antique Top Broking. Please go ahead.
Hi, sir. Just one question from my end. Is it possible for you to give the CapEx guidance for next 2 years as well, FY23, 2024 is it?
It will be in the current year, 28,500 is the target. And we expect that in In future years also it will be of the same order, so something around INR 30,000 crores.
Understood. That's fine. Thank you.
Thank you, Mr. Munda. Now I would like to hand over the floor to Mr. Harsha Jagarwal. Please go ahead, sir.
I would like to thank
the management and everyone for taking time to attend the call. Thank you everyone.
Thank you.
From the management side of Pindenol, we'll thank everyone, all the analysts, all the investors. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] Thank you, everyone. Yes, thank you, Bati Wala and Mr. Hazraj. Thank you.
Thank you, ladies and gentlemen. This concludes your conference call for today. We thank you for your participation and for using iJunction conference service. You may disconnect your lines now and have a great day. Thank you.