Oil & Gas Marketing Companies: 4QFY24 Previews: Inventory losses to hit profitability – By Insight Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We preview Oil Marketing Companies 4QFY24 results where we expect revenue of our coverage companies (PSO &amp; APL) to increase by 6%/9% YoY/ QoQ mainly due to higher volumetric sales. To highlight, volumetric sales of the industry increased by 3%/8% YoY/QoQ to clocked in at 3.9mn tons in 4QFY24, mainly attributable to uptick in HSD sales. As per OCAC&rsquo;s data, PSO &amp; APL closed the quarter with market shares of 47.5% &amp; 9.3%, respectively. Profitability of our universe is expected to witness downward trend in 4QFY24 due to inventory loss vs. inventory gain recorded in preceding quarter.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Ex-refinery prices of MS and HSD decreased by 12% an...