· OMC sales for Sep’21 clocked in at 2.0mn tons, up 29%YoY majorly due to low base as COVID-19 related restrictions kept the base low in Sep’20; however, on MoM basis, sales remained flat. The YoY increase was led by HSD increasing by 51%YoY while MS witnessed an increase of 25%YoY.

· Overall, for 1QFY22, OMC sales have increased by 24%YoY where FO led the pack with an increase of 38%YoY while MS/HSD posted an increase of 14/27%YoY.

· PSO turned out to be the clear winner for Sep’21 with an increase of 41%YoY against 29%YoY for the industry where the company outperformed peers in the retail fuel segment with an increase of 49%YoY against 36%YoY for the industry

· We expect OMC volumes to tread the same path with economic activity picking up the pace while we believe the incentives provided in the FY22 Budget to the agriculture sector and the focus on infrastructure spending can provide a significant uplift to volumes in the medium term.

Courtesy – AKD Research.