IOCL's Q1FY19 results were a strong beat to our estimates mainly due to higher inventory gain of Rs78.7 bn. Revenue increased 22.8% YoY to Rs1.3tr on the back of higher sales volume and higher prices. EBITDA was up by 142% YoY to Rs125bn and reported PAT grew by 50.2% YoY to Rs68bn. Adjusting to inventory gain, Refinery business has disappointed while marketing business delivered better than expected profits. The company's crude throughput/sales volume increased marginally 0.8%/1.6% YoY to 17.7/22.9mmt. GRM also stood at US$10.21/bbl during Q1FY19 whereas Normalized GRM stood at US$5.18/bbl adjusted to inventory gain and price lag. We are...