Indian  Oil  sees  strong Q3,  but refining margins are weak

Indian Oil Corp. Ltd’s strong performance for the quarter ended December will improve sentiment for the stock. The scrip has gained more than 8% post its results on Friday.

Coming out of the lockdown, the oil marketing company (OMC) continues to see the benefits of improvement in auto fuel demand. Marketing margins on the sale of fuel are also impressive.

The weak link remains the refining margins environment, despite the outlook brightening with a recovery in the world economy.