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Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
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Ladies and gentlemen, good afternoon, and welcome to Indian Oil Corporation Limited Q1 FY '22 Limited Call organized by Batlivala & Karani Securities India Private Limited. [Operator Instructions] Please note that this conference is recorded.I would now like to turn the conference over to Mr. Harshraj Aggarwal. Thank you, and over to you, sir.
Thank you. A very good afternoon to all on behalf of Batlivala & Karani Securities. I welcome you all to the post-result conference call with the management of Indian Oil Corporation. It gives us great pressure to once again host the management for this post-result discussion. I would now like to hand it over to the management for initial remarks, post which we'll open the floor for interactive session. Over to you, sir.
Thank you, Mr. Aggarwal. We welcome you all to the post-result conference call. From the management side, we have got Mr. Sandeep Kumar Gupta, Director Finance, Indian Oil Corporation; and Mr. Ruchir Agrawal, Chief General Manager, Corporate Finance and Treasury. Along with them, we have got Mr. K.S. Kesavan, DGM Corporate Finance; Mr. Subhajit Sarkar, SFM, Treasury; and myself, Prabhat Himatsingka, General Manager, Treasury.To begin with, Director Finance will briefly touch upon the quarterly performance highlights, and then he will take the questions. Now I'll request Director of Finance, Indian Oil to address the meeting.
Yes. Good afternoon to you all. I hope you are all safe and sound and have received the update post the declaration of the results.I touch on the highlights to begin with. As the country witnesses decline of the deadly second wave of COVID-19 and economic activities are returning to normalcy, Indian Oil being the energy of India stands to strike fast and more future ready to meet the energy demand of the nation.When the second wave of COVID-19 wreaked havoc across the nation, Indian Oil went beyond business priorities to support fellow citizens in the hour of crisis. In the face of a massive surge in demand of medical oxygen, Indian Oil diverted the high-purity oxygen used with the MEG plant at our refinery complex to produce medical-grade liquid oxygen for the masses. Several tankers of ISO containers for liquid oxygen transportation have been deployed across the country.In our quest of differentiated offerings for the customers, Indian Oil launched extra green diesel. Available at select station, this new diesel utilizes 7% biodiesel blending to offer an eco-friendly energy solution for our environment-conscious customers, increases fuel economy by 5% to 6%, lowers noise and offers better combustion and results into reduced carbonation.Our customer-oriented product innovations in the recent past is starting from rollout of India's first 100 octane petrol XP100, launch of XP95 to reach out for the crucial mid-premium segment, 100% conversion of lead and gas in Kargil areas to BS VI winter-grade fuel and extending this even for the defense forces. LPG innovations such as relaunch of Chhotu, Indian extra [ paid ] with better fuel efficiency; newly introduced rust-free composite LPG cylinders, which add to the aesthetic appeal of the [ agents ]; to the digital initiatives like LPG booking through Alexa and [indiscernible], these are all efforts as Indian Oil's commitment towards offering higher customer delight.You all will be delighted to note that over 30,000 of Indian Oil's retail outlets are now automated, ensuring correct quantity and correct price charge through realtime monitoring.In another such effort to enhance customer delight, Indian Oil launched the diesel at doorstep service in 20-liter safar jerrycans in Karnal, Haryana, for the first time. We also commissioned 83 mobile dispensers during April to June '21, which is the highest in the industry. With this, we have 720 mobile dispensers on pan-India basis.While a lot of efforts are being made in offering newer and differentiated products in conventional oil and gas portfolio, Indian Oil is also focused on harnessing clean energy and greener future; collaborative ventures with Israeli start-up, Phinergy, to commercialize the aluminum air battery technology in India; starting up with an oil plant for using indigenous feedstock; exploring other unconventional areas like converting used cooking oil to biodiesel; harnessing hydrogen as the ultimate sustainable fuel of the future are among some of the initiatives for achieving sustainable business.Indian Oil's pioneering efforts to usher in hydrogen economy in the country is now globally acknowledged. Indian Oil was recently invested into the World Hydrogen Council as a supporting member of the council. And the major update on this front is the nation's first green hydrogen plant that Indian Oil intends to build at its Maharashtra refinery.As part of the continuous efforts to diversify crude basket, Indian Oil became the first Indian PSU refiner to procure Guyanese Liza crude. We also contracted for 2.9 million metric tonne of U.S. crude grades on an optional basis for the current years, continuing the previous year's experience.Talking about numbers. The average price of crude that is Indian basket during this quarter was at $67.50 per barrel, an increase of 12% from the average price of the immediately preceding quarter, that is $60.45 per barrel in Q4 FY '21. If we compare on a corresponding quarter basis, there is an increase of 121%.With respect to the crack spreads, all the products with reference to Indian basket, MS cracks have improved during the quarter at $7.57 per barrel as compared to the preceding quarter, which was $5.39 per barrel. Cracks are also higher than the corresponding quarter of FY '21 where it was only $0.70 per barrel. For HSD, the crack spreads during this quarter at $4.52 per barrel has been higher as compared to the preceding quarter, which was $3.78 per barrel. Cracks are also higher than the corresponding quarter of FY '21 where it was only $3.38 per barrel.Now as far as petrochemical spreads are concerned, the spread for polymers in this quarter at $620 per tonne was 10% lower than the previous quarter, which saw per $690 per tonne and about 7% higher than the corresponding quarter of FY '21 where it was only $581 per tonne. In case of PTA, the spread during this quarter was near about the same as was in the previous quarter, around $200 per tonne. However, this was 19% lower than the corresponding quarter of FY '21, which was at $248 per tonne.With respect to MEG, the spread in the current quarter at $56 per tonne was about 55% lower than previous quarter and 72% lower than corresponding quarter of FY '21. We expect that with recovery of [ PTM and midi ] cracks, perhaps the petrochemical performance would be still better.This quarter, we have registered a PAT of INR 5,941 crores as against INR 1,911 crores in the corresponding quarter of FY '21. With vaccinations being rolled out across the globe, we are expecting improvement in refining margin environment going forward and hence, better cracks in the periods to come. Revenue from operations during the quarter is at INR 1,55,056 crore as against INR 1,63,606 crore in the preceding quarter.Now let us see the verticals. Refineries. The throughput during the quarter was 16.7 million metric tonne with a capacity utilization of 96.2%. The throughput for preceding quarter was 17.6 Mmt with a capacity utilization of 102.4%. Throughputs were mainly impacted due to planned shutdown and fall in demand because of second wave of the pandemic.IOC refineries registered a GRM of $6.58 per barrel during the current quarter. The CP GRM for the quarter is $2.24 per barrel. And our refineries have thus outperformed the benchmark Singapore GRMs during Q1, which was only $2.05 per barrel.On the pipeline, the capacity utilization was about 83% during this quarter as compared to 92.5% in the Q4 of FY 2021. And our pipelines continued to generate stable returns, giving an EBITDA of about INR 1,575 crore during this quarter.On the marketing, the sales were 18.82 million metric tonne during this quarter as compared to 20.82 million metric tonne in the preceding quarter. And petroleum sales during the corresponding quarter of FY '21 was at 15.48 million metric tonnes. The marketing EBITDA for this quarter stood at INR 5,425 crores as against INR 3,443 crores during the previous quarter.In petrochemicals, the business reported an EBITDA of INR 1,989 crore as against INR 2,248 crore in the previous quarter, which was mainly because of our very healthy polymer cracks.The borrowings as on 30th of June '21 stood at INR 85,720 crore as against INR 94,413 crores as on 31st of March '21. And these figures do not include the lease obligations [indiscernible] to revise [ MCA ] guidelines.I end my briefing here, and we'll be glad to take your questions. Thank you very much.
[Operator Instructions] We have first question from the line of Mr. Kirtan Mehta from Bank of Baroda.
Could you give me as an idea about the inventory gains on the marketing side, some color on it? Last quarter, you had sort of stopped giving us an indication about the inventory gains on that side, but any color would be useful.
No. So we do not want to disturb the practice which we started last quarter. And there are a lot of things -- as I explained during the last quarter also, there are a lot of things which impact the results of the company. And seeing any particular information in isolation may not be helpful. So we are not sharing such information.
I was asking about the project progress and particularly the projects which are due for commissioning this year. Is there any impact due to the sort of the wave 2 that we all noticed?
No. You must be aware that we exceeded our CapEx target for last year. And so that means all our projects were running perfectly okay. Minor -- maybe a minor slip somewhere, but there is nothing worth mentioning. And this year also, we are committed to meet our CapEx target. So no apprehension on that side.
We have next question from the line of [ Mr. Vardarajan Shivashanker ] from Antique Stock Broking.
I just wanted to clarify, this $2.24, the GRM which you're referring to, is that comparable to Singapore number which you used to give earlier? Is that adjusted for the time difference?
So when you say it is comparable to Singapore margin, it is on the same basis, that means it is the current price GRM. India -- for some, it is always a current price GRM only. It's a vertical GRM, Singapore margins. Whereas in our case, we strip off the inventory gains and the price lag impact to make it current price GRM. However, there is a change -- there is a difference in the yield. So there is some yield which is typically considered in Singapore benchmark margin or things. Whereas in our case, it is the actual yield. So those are the only differences.
Understood, sir. Secondly, on these new energy initiatives, would you be able to give some kind of a CapEx outlook over the next [indiscernible]?
[indiscernible] new initiatives?
All the new energy initiatives, clean energy initiatives. Your hydrogen, your battery, all these corporations, any CapEx numbers which are available?
CapEx numbers?
Yes. Any kind of explanation you are planning.
We are coming up with 2 ethanol plants, you must be aware. That is, I think, INR 700 crores each that is prepared at Panipat 2G and 3G. Other than this, CBG, you must be aware of CBG compressed biogas, that 5,000 plants are being commissioned by Government of India, against which Indian Oil has already -- these are not directly being done by Indian Oil. However, we have tapped agreements with them. So this will be -- I think, together, this is going to involve -- because each plant will be having a CapEx of around INR 50 crores, so INR 5,000 per plant, you may calculate. And then 11 -- we have already given this in terms of appointment for 1,100 plants for CBG. Other than this, we have got EV stations. We have already created now -- 257 EV station have already been created at our retail outlets. And further, we have plans of 1,800 EV stations -- EV charging stations at our IOC retail outlets.
[ Vardarajan ], actually, all these investments in these areas, they are in front of what CapEx we are used to do. So that is why we do not pay much attention to this CapEx in these things. You have to see the big picture. The big picture is that we are in [indiscernible] Israeli company, Phinergy. And we are working on aluminum-air battery technology. And if that technology concept is proven, we have an understanding of proving that with 2 vehicle manufacturers. And if that is successful, then we have already registered a company in India for manufacturing the aluminum-air battery. So that is the big picture. If that happens, we will perhaps be the leader in the technology in this area.And similarly, in other areas also, we are seeing the transition and we are trying to make a pitch so that -- because the transition, if there is any impact on the fuel sale, then we can make up that loss through these new energies. And in hydrogen also, we are making -- we are working on a lot of, say, methods of hydrogen generation. On pilot basis, our LNG plant at Rajghat is proven now. And now the fuel segments also are in public domain now.And we are also trying to run some vehicles on hydrogen generated at our Gujarat refinery, and the buses will run to Statue of Unity and Sabarmati [indiscernible] from [indiscernible] refinery. Similarly, we're also planning to run buses from Delhi to Agra.So these initiatives, we are taking. And now with our membership in the Hyrdrogen World Council, we will further strengthen our initiatives in this direction.
That's fine. Just once more on this Mathura hydrogen plant, any insight as to what is the size and like any kind of end use you are currently planning? Or it's more like that's on the plan stage?
So we have conceived this, and we will definitely do it. But it is on the drawing board stage as of now. We want to -- we have windmill power elsewhere in the country, which we will sort of wheel back to Mathura refinery and generate green hydrogen from Mathura refinery. But the CapEx and the capacity, et cetera, is it still being worked out.
[Operator Instructions] We have question from Mr. Probal Sen with Centrum Broking.
Sir, just wanted to -- you mentioned about the fact that FY '22, no delays are envisaged in any of the projects. I just wanted -- if you can just briefly reiterate the major projects that are being held and the CapEx guidance for this year, sir.
Prabhat Himatsingka. I'll just tell you major project, there's one. To start with, the pipeline projects at Paradip, Hyderabad pipeline, which is under completion, almost 95% is completed during this year. Then there is a query on the bus Kolhapur pipeline, which is under progress, and almost 87% to 90% is done. And then there is an extension of Paradip-Haldia-Durgapur pipeline, LPG pipeline from Patna-Motihari-Baitalpur. This is also 90% completed. Then ethylene glycol project, MEG project, that is at Paradip, which is also 90% completion. And then we have got Ennore-Bengaluru from [indiscernible] to Tuticorin LNG pipeline, which is under 87% to 90% completed. So these are the major projects that will come up during this year. Other than this, we have got a number of small projects which are under -- going and that detail can be discussed separately.
Sure. And what's the overall CapEx that is planned for this year, sir?
This year's CapEx plan is around INR 28,500 crores.
INR 28,500 crores. And can I know how much of marketing outlets and infrastructure is part of this, sir?
Marketing total, around, is INR 6,600 crores. And if you want, the other projects, maybe refinery, INR 5,000 crore; pipeline, again, INR 5,000 crore; and petchem is just INR 2,500 crore. And balance will be some amount in JV, we have got a joint venture [indiscernible]. And some gas infrastructure will be INR 1,100 crores, around.
So the main thing which is expected in this fiscal is basically the pipeline, the special gas pipeline in the southern area, Southern India, which is slated to be commissioned by February '22. That will be a [indiscernible] thing. And second is the MEG unit at Paradip refinery, which will get commissioned this year.
Got it. And sir, one last question, if I may. What sort of -- post the gradual reopening that we have seen in most major cities in -- from July onwards or June onwards, what sort of fuel consumption levels are we seeing in the current quarter in July and August? Any sense you can give us in terms of as a percentage of the COVID levels or whatever is comfortable?
So for July, the MS consumption as compared to July '19 has seen a growth of 3.5% as compared to July '19. Okay. But then diesel continues to be a cause of worry where the degrowth is 11%. So diesel sales are still short of July '19 levels. And the same is the case with ATF where the levels are at minus 53%. LPG has seen a robust growth of 7.5% with respect to July '19. So with the opening of economy, we believe that ATF and diesel should also recover handsomely.
So sir, for diesel, is it the industrial demand that is still basically the worry or even diesel transfer from demand?
It is the public mobility, which is not there, and that is taking its toll on the diesel consumption. So the moment the public mobility starts, the buses, et cetera, so -- and definitely, there can be a small impact because of industries also, but then I think industrial is more or less okay. So it is mainly the public transport, SVUs and private. School colleges are not open, so that consumption is not there. So those things are -- railways are not running to their normal levels. These are the things which are affecting.
We have next question from the line of Sabri Hazarika from Emkay Global.
Just one question. Your Chairman mentioned about the Petronas JV being funded in scope to include retail outlets. And probably, you are looking to launch a separate brand altogether. And he also mentioned that some of the existing retail outlets may be monetized through this way. So can you elaborate on this? What kind of arrangement is this? Or are you looking to like monetize retail outlets also going forward in the -- going forward?
We have a joint venture with Petronas of Malaysia since 1998. So it is more than 20 years that JV is operating, but we were limited only. The JV operations were limited only in the area of LPG terminaling and bottling, et cetera, only at Haldia and later on at Ennore.Now the market is opening up. The private players have been allowed wherever their net worth is more than INR 250 crores. And we find certain limitations because we have to allot the dealerships through lottery system only. You are also aware of the wayside amenity facilities coming up in the national highways where we need to engage somebody whom we cannot perhaps allot through lottery being a public sector.So we are now -- we have decided, along with Petronas, that we will expand the operations of this joint venture with them in the name of IPPL. We will expand their horizon to fuel retailing also. And this encompasses the whole lot of opportunities. It could be new areas, identification of new areas and setting up of retail outlets by that company or it could be wayside amenities, et cetera, or it will also be sale of certain existing retail outlets to them, which is akin to monetization. So all options are open to us, and we are detailing on these aspects.
So it will be somewhat similar to what the Reliance and British Petroleum has done regarding their JV?
I do not know what they have done.
We have next question from the line of Mr. S. Ramesh from Nirmal Bang Securities.
Can you give us your thoughts on the current spreads in refining and the petrochemicals side?
So petrochemical -- refining sector first. The MS cracks are now at a decent level of about $7 per barrel. But I think that are still impacted and are low at about $4 to $5 per barrel only. Now MS consumption is back to normal levels, and that is why the cracks are -- have improved of late. And diesel frac is still impacted, that is why the diesel cracks are low.We hope that with the vaccination happening all over and opening up of economy, once people realize that post vaccination, perhaps the impact of any such infection is not that severe, we believe that these consumptions would go up and the cracks will also correct sharply. So they should move up.In petrochemical also, we saw weaker cracks as compared to the last quarter, and we expect that petrochemical crack should also improve especially -- in fact, all the areas, polymers were lower in this quarter, PTA was lower, and MEG was also lower. So we expect these should also recover.
What is the current status of the polypropylene utilization in Panipat? We were planning to import propylene and do that. So what is the status now?
So that did not materialize because that is -- that was not owned to be viable. So our capacity utilization is still something which we are working upon. It is lower, about 16%. It's still low. We could not -- that plant did not materialize. So we are working on various means how to improve that capacity utilization.
[Operator Instructions] We have next question from the line of Mr. Nitin Tiwari from YES Securities.
So my first question is related to the inventory levels that we have for crude and refined fuel. So what are the number of days of inventory that you are holding in first quarter? And how does that compare with the average number of days you usually hold?
We roughly, at any given point in time, hold about 16 million tonne of inventories, which consists of about 50% crude, 50% product and intermediate. And you can tell the numbers based on that.
Right. So that was -- so we were maintaining our average level in this quarter.
Yes, yes.
Right. And second question is regarding, sir, the fuel swapping arrangement that we have with other oil marketing companies. So of the entire fuel sales that we have in any given quarter, how much of that would roughly be swapped with other companies?
No. But how did you get this information that we swap with others?
Sir, just a general understanding, I mean, that we have for some time that there's a pure swapping arrangement which exists with other oil marketing companies. Correct me if I'm wrong.
Yes, this is -- there maybe. But because of -- let's say, refineries cannot be everywhere. So some places, we have got refineries. Some places would be [ OMC ] must be having refinery. So for the [indiscernible], this is being done. However, the volume quantity may not be -- if I understand, may not be available.
This is not any swapping arrangement. This is a trade arrangement where at some places, we give to other companies and take from those companies at some of the places where we do not have refinery. So this is a trade arrangement but not a swapping arrangement. We're not aware of any such swapping arrangement.
Right. My question was related to trade arrangement only. If we can get some idea around what is the quantity involved, which is there in the trade -- that's the only limited questions.
No, I do not have that information right now.
Right. Perfect. My second question is a more broader question in terms of the outlook for petroleum products. As you usually mentioned at the beginning of the call that you've taken a number of measures in terms of, basically, green energy projects and sustainable development. So how do you see the demand for petroleum products panning out for India over the next decade? And in that backdrop, like would you believe that a refinery expansion projects and like investing in the refinery expansions make sales? Because in my perspective that maybe like the petroleum demand is sort of reaching a peak, and there's a lot of conversation around penetration of EV and like green fuels, like ethanol and biodiesel and all that. So if you can give us some perspective as the market leader, industry leader that what are your thoughts?
We have mentioned it earlier also that we have very carefully taken the decision for expanding our refinery capacity. We have estimates from various agencies and we have our own estimate, which says that MS as well as HSD, growth is going to be there for at least a decade at a level of about 5% to 6% or 4% to 5%.So these remarks are going to go up for foreseeable future. And transition, though will happen, but it will not assume that scale or will not happen that soon, which will sort of render any of our projects as unviable or prove uneconomical. So because the absolute energy demand of the country in the wake of the growth which we are anticipating is going up, so the consumption of fuel products will also grow. Their growth speed may perhaps slow down a little bit maybe after a decade or so. But as of now, we do not have any update.
We have next question from the line of Mr. Manikantha Garre from Axis Capital.
Just a couple of questions from my side. First one is the others EBITDA. It looks like there is a fall from last quarter. It was INR 927 crores last quarter. It is INR 211 crores. Where is this impact coming from for others EBITDA, sir? That's my first question.
We'll get back to you. You can go ahead with the second question.
Okay. So we have currently 257 charging stations, which were mentioned by retail outlets. So what is the amount of CapEx required per charging station here? And earlier, I think last year, there was an MOU signed with NTPC, Power Grid, Hyundai, Tech Mahindra and Tata Power for the charging points. So what is the status of this MOU? And what is their involvement here? That is the second question.
Charging station, first, EV charging station, the CapEx, sir, actually, we are not at the moment having the CapEx. But that maybe -- now we should not give a figure, maybe we not give that. But the thing is regarding [ tariffs ], maybe a lot of things are going on. However, that is maybe at an appropriate time that will come out from -- our company will disclose that.
Okay. So -- but is it fair to understand that the entire CapEx is being done by us as of now for the charging points?
As of now, it is being done by IOC.
Understood. Sir, just last question from my side, if I can squeeze in. What is the current utilization of the refinery, sir? Because I think yesterday, on Friday, Chairman have mentioned that current refinery utilization was at -- is it 90%? Is that the case?
Yes, it is around 90% for the month of July.
Okay. Is it because [indiscernible]...
89.1% will be [indiscernible].
Sure, sir. Is it because part of the refinery shutdown has already been taken? Or what is the reason? Because the demand is increasing on the -- after the wave 2, so why the utilization has fallen?
It had -- basically, we can -- refinery even at a high level, but then it has to correspond to the demand also. Diesel, you are aware, is our major project -- product. So the refinery run rate is also a factor of the demand which is there in the country.
[Operator Instructions] Next question from the line of [ Mr. Vardarajan Shivashanker ] from Antique Stockbroking.
Just this LPG claims with the government, I know these numbers are very, very small now. However, conceptually, I just wanted to understand for the current quarter or 1Q, have the claims been filed? Is the government paying it? Any update on that?
So I think this will be sufficient to tell that we do not have any outstanding claims pending with the government of India as of now.
Okay. If I may probe a little more, was there a [indiscernible] on Q?
I'm not giving that detail. You can take that as on 30th of June, there is no amount which is outstanding from government of India due to these monthly claims.
We have next question from the line of Mr. Vidyadhar Ginde from ICICI Securities.
My first question is on what is your -- cost of your crude in June? Whatever is your crude inventory in June? And what is that cost?
So the -- on 30th of June, the valuation rate was 63.75% -- sorry, sorry, just a minute. 63.75%, yes. Sorry, sorry, 70.44%, 7-0-point-4-4.
Yes, yes. And the second question is regarding what was mentioned earlier in the call regarding the compressed biogas. It was not very clear, you seem to -- you are going to invest in 1,100 plants. And so INR 50 crores is the cost of a plant. I suppose what are required for your investment? [indiscernible]
Investment is 0. Government of India also put up 5,000 such plants by '22/'23, perhaps. And the oil companies have been asked to issue letters of intent to the intending entrepreneurs so that we can give them the price and the offtake assurance. So in that scenario...
So it's more about offtake?
Yes, it is about offtake only.
So no real CapEx in CBG.
No real CapEx is involved in these plants.
We have next question from the line of Mr. Sumeet Rohra from Smartsun Capital Private Limited.
So firstly, sir, many congratulations on a great set of results, and I hope you and team and everyone at IOC are keeping safe. Sir, now I have a couple of things which I wanted to ask you. So sir, firstly, our marketing EBITDA has been very healthy at about INR 5,400 crores. So sir, just to understand, give or take, 5% here or there, can we expect that we are on course now to do about a INR 20,000 crore EBITDA in terms of marketing?Sir, secondly, I wanted to ask you on this scope very briefly about what the Indian Oil-Petronas JV on the fuel retailing part. Sir, today, I mean, Indian Oil has about 32,000 outlets. And there is one company already which has done some deal with a foreign company, and that valued at about INR 7 crores, INR 8 crores, about INR 10 crores per outlet. So even if you assume at about INR 5 crores, INR 6 crores an outlet, sir, our fuel retailing business would be something like INR 2 crore, which would be 2x the market cap today what we are.So if you can, sir, further highlight and make us understand that our business is very valuable in terms of all the verticals we have with us, its refining pipeline. But the fuel retailing is the -- I think the most prized possession in our crown. So if you can just help understand a bit on this venture. And can we unlock some value from this, sir?
Yes. So first was what?
Sir, the first part was the marketing EBITDA.
Marketing EBITDA. Marketing EBITDA. So I believe that we can have some upside going forward on the marketing EBITDA side. This is slightly higher than the -- perhaps the last quarter because we -- there were certain year-end provisions which were there for the marketing side in Q4. But going forward, these levels are definitely normal, and I see some upside in these levels also.As far as the IPPL joint venture announcement is there, as I explained in response to an earlier query, we have all options open. So we can have new retail outlets being set up by that joint venture or we can have the wayside amenity dealership being awarded by that company on the various outlets which will come up on the national highways as per their policy. And we can also monetize some of our existing retail outlets. So all those options are there with us, and the detailing is happening.And I fully agree with your view that there is a lot of value. However, IOCL has not [indiscernible] as of now. And all [indiscernible] matters we do not intend do it -- do right now. But yes, we definitely echo the same sentiment that we have a lot of value in the company in various segments of the company. And perhaps the market price, whatever is there, is not a correct reflection of the value.
And sir, sorry, just for one, I mean, the top process which we had, was that -- if you can just include a detailed presentation of our different verticals. And if you can just give a value which is like a replacement kind of value so then kind of people -- I mean investors will get a better sense of how valuable our company is. So that will kind of, I think, add huge value for all stakeholders. So if you can just have that done because then people will get a better sense of what actually IOC consists of.
Okay. We will consider that.
We have next question from the line of Mr. Vivekanand S. from AMBIT Capital.
A couple of quarters ago, government had suggested monetization of PSU assets through the InVIT model. I believe management had commented a little bit on this, particularly with respect to certain assets like pipeline or hydrogen projects that we have. Any update on this and potential time lines as well as the kind of assets that we may want to monetize via InVIT and the proceeds -- likely proceeds that we target?
As per our plan, which has been submitted to our Ministry, we are, in the current year, planning to monetize 2 of our hydrogen generation units at Gujarat refinery. And based on the success of that, perhaps 5 more plants in the next years. So that is our monetization plan as of now.
Okay. And sir, just a follow-up. How much of your total hydrogen production are you going to monetize this year?
These 2 plants are of what capacity? [ 70%, 50% ]? Just a minute. I'll just tell you. I will -- we will share you with you separately.
We have next question from the line of Mr. Iqbal Khan from Edelweiss AMC.
Sir, one simple question I have. We have the operational highlights wherein you have mentioned the capacity utilization is at 96%, the refinery utilization. Sir, if you remember, in the last quarter, you had mentioned the refinery utilization for the month of April was 96%. And followed by May, it was 84%. So does that mean that the refinery utilization in June has gone more than 100%? Or I mean, is my understanding correct on this? Or the operational highlight number which you have mentioned, 96% utilization during this quarter, is that right or wrong? So this is my question for this.
It is right.
So you mean in June, the utilization level went above 100%?
I do not have a number for June as of now. But the 96.2% is correct.
We have next question from the line of [ Mr. Sevum Badad ] as an individual investor.
First of all, I'm proud to associate with IOCL. I've recently added IOCL into my portfolio. I have suggestions on this call and a few questions also. So I'll proceed with the questions. Question first, sir, do we have any monetization model on the EV charging station on the per charge basis?
We have started, but we have not put up many charging stations. So maybe the question of monetizing them as of now.
Not as of now, but in the future, do you -- can we consider that as well?
Well, let us -- we will see that in future. I can't answer it right now.
Okay. Okay. And sir, also, as one of my suggestions, can we -- can the IOCL also have EV financing business because the EVs are getting -- EVs are coming at a costlier price. So for affordability, we can also have a financing business for EV in the near future, if this can be taken as a suggestion.
We do not have such plans.
Okay. Okay. Also, one of my suggestion was for the Indian business. I can see that there are certain problems while linking the LPG ID in the Indian Oil app. So if that can be taken online and the [ adaptation ] of the ID can be taken online, it will be much seamless.
You can send your suggestion to our team. We will [ act ] on it.
We have last question from the line of [ Mr. Kishan Mundhra ] from Antique Stockbroking.
Just one question from my end. Is it possible for you to give the CapEx guidance for next 2 years as well, FY '23, '24 as well?
It will be -- the current year, INR 28,500 crore is the target. And we expect that in the future years also, it will be of the same order, so something around INR 30,000 crore.
Now I would like to hand over the floor to Mr. Harshraj Aggarwal. Please go ahead, sir.
I would like to thank the management and everyone for taking time to attend the call. Thank you, everyone.
Thank you.
From the management side of Indian Oil, we thank everyone, all the analysts, all the investors. Thank you, everyone. Yes. Thank you, Batlivala and Mr. Aggarwal. Thank you.
Thank you, ladies and gentlemen. This concludes your conference call for today. We thank you for your participation and for using iJunxion conference service. You may disconnect your lines now, and have a great day ahead. Thank you.