Low fuel demand growth: HSBC cuts earnings forecasts for OMCs

Analysts at HSBC have trimmed their earnings forecasts for state-run oil marketing companies (OMCs) for FY22 and FY23 from earlier projections, citing lower-than-anticipated growth in the country’s auto fuel consumption.

The core profit after tax of Indian Oil Corporation (IOCL) in FY22 will be Rs 13,514.2 crore, down 5% from the earlier estimate, according to a note by HSBC. The profit projected for FY23 now stands at Rs 16,467.2 crore, 6% lower than the previous forecast.