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Indian Oil Corporation LTD: Key Financial Indicators

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GICS Industry : Oil, Gas & Consumable Fuels l Sub Industry : Oil & Gas Refining & Marketing

l Website : www.iocl.com

Indian Oil Corporation Ltd


Key Stock Indicators
NSE Ticker : Bloomberg Ticker : Face value / Share: Div. Yield (%): IOC IOCL:IN 10.0 3.6 CMP (as on 20 Dec 2010Rs/share): 52-week range up to 20 Dec 2010 (Rs)(H/L): Market Cap as on 20 Dec 2010 (Rs mn): Enterprise Value as on 20 Dec 2010 (Rs mn): 367.7 449.75/274.30 892,637 1,371,300 Shares outstanding (mn) : Free Float (%) : Average daily volumes (12 months) : Beta (2 year) : 2428.0 21.1 1,148,169 0.6

IOCL was incorporated in 1959 as Indian Oil Company. To ensure coordination of refining and marketing activities, Indian Oil Company and Indian Refinery merged in 1964 to form IOCL. The government currently holds around 79% stake in the company.

Key Financial Indicators


Mar-08 Mar-09 Mar-10 Revenue (Rs mn) 2,307,651.1 2,893,370.9 2,547,996.5 EBITDA ma rgins (%) 6.9 3.4 7.4 PAT (Rs mn) 85,496.4 22,671.7 109,974.8 PAT ma rgins (%) 3.7 0.8 4.3 Gea ring (x) 0.9 1.0 0.9 EPS (Rs /s ha re) 71.7 19.0 45.3 PE (x) 6.2 20.4 8.1 P/BV (x) 1.2 1.0 1.7 RoCE (%) 17.7 8.5 16.2 RoE (%) 20.7 5.0 22.3 EV/EBITDA (x) 5.7 9.4 7.3
n.m. : Not meaningful

KEY HIGHLIGHTS
Market leader in domestic products and sales IOCL is Indias largest integrated oil company, having a 46% share of domestic petroleum sales in 2009-10. It is also the countrys largest marketer of auto fuels with a 53% market share. The company has over 18,600 retail outlets, which is over 50% of total industry retail outlets (as of 2009-10). Second largest refiner As of March 2010, IOCL owned and operated 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (mtpa).

KEY RISKS Shareholding (As on September 30, 2010)

Movement in crude oil and product prices Governments policy on pricing of petroleum products and subsidy sharing by upstream players

FII 1%

DII 5% Others 15%

Stock Performances vis--vis market


Returns (%) YTD IOC NIFTY
Note: 1) YTD returns are since April 1, 2010 to Dec 20, 2010. 2) 1-m, 3-m and 12-m returns are up to Dec 20, 2010.

1-m -3 -1

3-m -12 2

12-m 22 18
Promoter 79%

27 12

Indexed price chart


(index) 160 140 120 100 80 60 40 20 0 ('000) 18000 16000 14000 12000 10000 8000 6000 4000 2000 0

Feb-10

Jul-10

Dec-09

May-10

Aug-10

Sep-10

Jan-10

Jun-10

Oct-10

Volumes (RHS)

Mar-10

IOC

Nov-10
NIFTY

Apr-10

CRISIL COMPANY REPORT | 1

Indian Oil Corporation Ltd


BACKGROUND
IOCL began operations in 1959 as the Indian Oil Company. IOCL as an entity was formed in 1964 by merging Indian Refineries Limited with IOCL. In March 2001, IOCL acquired the governments 52.5% equity stake in Chennai Petroleum Corporation Limited (CPCL) and 74.5% in Bongaigaon Refinery and Petrochemical Limited (BRPL). In February 2002, IOCL acquired the governments 33.6% stake in IBP along with management control. Following these CPCL, BRPL and IBP became subsidiaries of IOCL. The merger of IBP with IOCL was completed in May 2007. In 2008-09, BRPL was also merged with IOCL.

COMPETITIVE POSITION
Peer Comparison

Revenue (Rs mn) EBITDA ma rgins (%) PAT (Rs mn) PAT ma rgins (%) Gea ring (x) EPS (Rs /s ha re) PE (x) P/BV (x) RoCE (%) RoE (%) EV/EBITDA (x)
n.m: Not meaningful

Indian Oil Bharat Petroleum Hindustan Petroleum Corporation Ltd. Reliance Industries Ltd. Corporation Ltd Corpn. Ltd. Mar-10 Mar-10 Mar-10 Mar-10 2,547,996.5 2,029,412.6 1,220,505.9 1,115,051.0 7.4 15.1 4.2 2.9 109,974.8 243,431.6 17,198.9 14,751.5 4.3 12.0 1.4 1.3 0.9 0.6 1.8 2.0 45.3 81.7 47.6 30.4 8.1 12.9 14.5 13.8 1.7 2.8 1.7 1.2 16.2 16.5 9.4 8.6 22.3 24.4 12.1 12.2 7.3 11.8 10.0 11.8 Key Financial Indicators Units Revenue Rs mi l li on Rs mi l li on Per cent Per cent Per cent Times Per cent Per cent EBITDA ma rgins Per cent PAT PAT ma rgins EBITDA growth PAT growth Gea ring RoCE RoE

FINANCIAL PROFILE
Revenues decline but profitability improves in 2009-10 IOCs revenues declined to Rs 2,548 billion in 2009-10 from Rs 2,893 billion in 200809 as international petroleum product prices contracted. The companys GRMs too declined from $6.0/bbl in 2008-09 to $4.9/bbl in 2009-10 on account of severe pressure in petroleum product prices caused by the global economic slowdown. However, the reduction in gap between international petroleum product prices and domestic retail prices of regulated products such as cooking and auto fuels led to lower under-recoveries for public sector oil marketing companies (OMCs) like IOC which helped it improve profitability in 2009-10 vis--vis the previous year.

Mar-08
6.9 85,496.4 3.7 14.2 21.2 4.5 0.9 17.7 20.7

Mar-09
3.4 22,671.7 0.8 25.4 -38.4 -73.5 1.0 8.5 5.0

Mar-10
7.4 109,974.8 4.3 -11.9 90.2 385.1 0.9 16.2 22.3

2,307,651.1 2,893,370.9 2,547,996.5

Revenue growth Per cent

INDUSTRY PROFILE
Refining and marketing Petroleum product demand increased at a CAGR of 4.3 per cent from 111.6 million tonnes in 2004-05 to 138 million tonnes in 2009-10, whereas total domestic refinery capacity grew at a CAGR of 7.1 per cent to touch 170 mtpa in 2009-10. This increased capacity has led to increased exports of refined products. Global capacity utilisation rates of refineries have fallen from 88 per cent in 2005 to 83 per cent in 2009, thereby putting pressure on international product prices and hence capping GRMs. Indian GRMs were slightly better than the global GRMs due to strong demand and proportion of more complex refineries. Due to significant fall in crude oil prices in 2009-10, under-recoveries on cooking and auto fuels for PSU oil marketing companies (OMCs) also declined to 460 billion in 2009-10 from 1032 billion in 2008-09. In June 2010, the government deregulated petrol prices, while the domestic retail selling price of SKO, LPG, and HSD are still regulated. The OMCs dominate the retail marketing space and enjoy a near-monopoly status. As on September 2009, of the total 38,314 retail fuel outlets in India, IOC has 18278, BPCL has 8551 and HPCL has 8650, with private players like Reliance, Essar and Shell, making up the remainder.

CRISIL COMPANY REPORT | 2

Indian Oil Corporation Ltd


ANNUAL RESULTS
Income Statement (Rs million ) Net Sales Operating Income EBITDA EBITDA Margin Depreciation Interest Other Income PBT PAT PAT Margin No. of shares (Mn No.) Earnings per share (EPS) Cash flow (Rs million ) Pre-tax profit Total tax paid Depreciation Change in working capital Cash flow from operating activities Capital Expenditure Investments and others Cash flow from investing activities Equity raised/(repaid) Debt raised/(repaid) Dividend (incl. tax) Others (incl extraordinaries) Cash flow from financing activities Change in cash position Opening cash Closing cash
n.m : Not meaningful;

Mar-08 Mar-09 Mar-10 2,108,740.3 2,478,444.3 2,382,881.7 2,307,651.1 2,893,370.9 2,547,996.5 160,366.3 6.9 30,475.8 19,313.6 14,627.1 124,877.6 85,496.4 3.7 1192.4 71.7 98,753.8 3.4 31,965.9 44,707.9 11,902.7 35,204.4 22,671.7 0.8 1192.4 19.0 187,800.1 7.4 36,362.9 17,208.3 21,534.9 150,474.0 109,974.8 4.3 2428.0 45.3

Balance sheet (Rs million ) Equity share capital Reserves and surplus Tangible net worth Deferred tax liablity:|asset| Long-term debt Short-term-debt Total debt Current liabilities Total provisions Total liabilities Gross block Net fixed assets Investments Current assets Receivables Inventories Cash Total assets Ratio

Mar-08 11,924.3 438,715.4 450,639.7 61,133.8 113,558.3 274,626.9 388,185.2 339,164.2 13,257.9 1,252,380.8 635,114.5 463,532.2 207,731.1 581,117.5 52,564.8 372,210.7 10,602.2 1,252,380.8

Mar-09 12,139.7 445,994.2 458,133.9 59,690.9 177,262.1 295,857.6 473,119.7 332,373.4 26,278.0 1,349,595.9 679,292.7 564,316.5 313,345.2 471,934.2 47,817.3 285,182.0 10,051.8 1,349,595.9

Mar-10 24,279.5 504,997.0 529,276.5 54,170.0 320,134.2 174,513.4 494,647.6 351,736.1 103,332.5 1,533,162.7 780,202.0 668,915.7 214,424.5 649,822.5 56,061.5 410,765.1 15,984.3 1,533,162.7

Mar-08 125,204.0 -38,843.5 30,475.8 -109,435.7 7,400.6 -76,704.6 -14,569.3 -91,273.9 243.6 93,422.1 -8,275.5 -1,682.0 83,708.2 -165.1 10,767.3 10,602.2

Mar-09 33,982.7 -13,975.6 31,965.9 114,862.2

Mar-10 155,763.8 -46,020.1 36,362.9 -75,538.6

Revenue growth (%) EBITDA growth(%) PAT growth(%) EBITDA margins(%) Tax rate (%) PAT margins (%) Dividend payout (%) Return on Equity (%) Return on capital employed (%) Gearing (x) Interest coverage (x) Debt/EBITDA (x) Asset turnover (x) Current ratio (x) Gross current assets (days)

Mar-08 14.2 21.2 4.5 6.9 31.1 3.7 8.0 20.7 17.7 0.9 8.3 2.4 3.7 1.2 90

Mar-09 25.4 -38.4 -73.5 3.4 39.6 0.8 41.1 5.0 8.5 1.0 2.2 4.8 4.4 1.2 58

Mar-10 -11.9 90.2 385.1 7.4 30.6 4.3 28.9 22.3 16.2 0.9 10.9 2.6 3.5 1.3 91

166,835.2 70,568.0 -138,744.1 -142,152.4 -105,614.1 98,920.7 -244,358.2 0.0 84,934.5 -10,918.0 2,956.1 76,972.6 -550.4 10,602.2 10,051.8 -43,231.7 9,710.7 21,527.9 -37,277.7 -15,364.7 -21,403.8 5,932.5 10,051.8 15,984.3

QUARTERLY RESULTS
Profit and loss account (Rs million) No of Months Revenue EBITDA Interes t Depreci a ti on PBT PAT Sep-10 3 781,976.3 77,519.4 5,079.1 11,178.1 61,262.2 52,939.5 100.0 9.9 0.6 1.4 7.8 6.8 % of Rev Sep-09 % of Rev 3 618,178.1 14,619.0 3,477.2 7,805.2 3,336.6 2,843.6 100.0 2.4 0.6 1.3 0.5 0.5 Jun-10 3 728,075.1 (17,826.2) 5,711.7 10,346.0 (33,883.9) (33,883.9) 100.0 (2.4) 0.8 1.4 (4.7) (4.7) % of Rev Sep-10 % of Rev 6 1,510,051.0 59,693.2 10,790.8 21,524.1 27,378.3 19,055.6 100.0 4.0 0.7 1.4 1.8 1.3 Sep-09 6 1,225,018.0 79,652.7 6,817.2 15,403.2 57,432.3 39,671.9 100.0 6.5 0.6 1.3 4.7 3.2 % of Rev

CRISIL COMPANY REPORT | 3

Indian Oil Corporation Ltd


FOCUS CHARTS & TABLES
Rs mn 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

Quarterly sales & y-o-y growth

Per cent 80 60 40 20 0 -20 -40

Rs mn 75,000 50,000 25,000 0 -25,000 -50,000 -75,000 -100,000

Quarterly PAT & y-o-y growth

Per cent 2,000 1,600 1,200 800 400 0 -400

Dec-07

Dec-08

Dec-09

Jun-08

Jun-09

Mar-08

Sep-08

Mar-09

Sep-09

Mar-10

Jun-10

Sep-08

Sep-09

Dec-07

Dec-08

Dec-09

Mar-08

Mar-09

Sales

Sales growth y-o-y (RHS)

Mar-10

Sep-10

Jun-08

Jun-09

Jun-10

Net Profit Per cent 20 15 10 5 0 -5 -10

Net profit growth y-o-y (RHS)

Rs/share 80 60 40 20 0 -20 -40 -60 -80

EPS

Movement in operating and net margins

Sep-08

Sep-09

Sep-10

Dec-07

Dec-08

Dec-09

Mar-08

Mar-09

Sep-08

Sep-09

Dec-07

Dec-08

Mar-08

Mar-09

Dec-09

Mar-10

Sep-10

Jun-08

Jun-09

Jun-10

OPM

NPM
Designation Executi ve Cha i rma n, Whol eti me Di rector Di rector Non-Executi ve Di rector Non-Executi ve Di rector Whol eti me Di rector Nomi nee Di rector-Goi Di rector Di rector Whol eti me Di rector Di rector Non-Executi ve Di rector Non-Executi ve Di rector Non-Executi ve Di rector Non-Executi ve Di rector Nomi nee Di rector, Non-Executi ve Di rector

Shareholding Pattern (Per cent) Dec 2009 Mar 2010 Promoter 78.9 78.9 FII 0.8 0.7 DII 5.3 5.3 Others 15.0 15.1

Jun 2010 78.9 0.7 5.3 15.1

Sep 2010 78.9 1.0 5.0 15.1

Board of Directors Director Name Bri j Mohan Ba ns a l (Mr.) Ba s avara j Ni nga ppa Banka pur (Mr.) Gauta m Barua (Prof.(Dr.)) Mi cha el John Bas ti an (Mr.) Sudhi r Bha l l a (Mr.) Sudhi r Bha rga va (Mr.) Gya n Cha nd Da ga (Mr.) Ki ra n Kuma r Jha (Mr.) Ra vi nder Kumar Ma l hotra (Dr.) Sera ngul a m Va rada raja n Nara s imhan (Mr.) Anees Yus uf Noora ni (Mr.) Indi ra Ji tendra Pa ri kh (Dr.(Ms .)) Ni rma l Kuma r Podda r (Mr.) Indu Ra nji t Sha hani (Dr.(Ms .)) Pra deep Kuma r Si nha (Mr.)

Additional Disclosure This report has been sponsored by NSE - Investor Protection Fund Trust (NSEIPFT). Disclaimer This report is based on data publicly available or from sources considered reliable. CRISIL Ltd. (CRISIL) does not represent that it is accurate or complete and hence, it should not be relied upon as such. The data / report is subject to change without any prior notice. Opinions expressed herein are our current opinions as on the date of this report. Nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The subscriber / user assume the entire risk of any use made of this data / report. CRISIL especially states that, it has no financial liability whatsoever, to the subscribers / users of this report. This report is for the personal information only of the authorised recipient in India only. This report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person especially outside India or published or copied in whole or in part, for any purpose. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters / distributors of this report. For information please contact 'Client Servicing' at +91-22-33423561, or via e-mail: clientservicing@crisil.com.

CRISIL COMPANY REPORT | 4

Mar-10

Sep-10

Jun-08

Jun-09

Jun-10

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