IOC's Q2FY21 result was a beat to our estimates owing to significantly higher inventory gains. Adjusting to this, result was below our forecast on the back of negative core GRM and lower than expected marketing profits. Reported GRM came at US$8.6bbl owing to inventory gain of Rs73bn (US$9.6/bbl) while core GRM stood at negative US$1/bbl. IOC's crude throughput declined 20% YoY to 14mmt while sales volume dipped 6% YoY to 18.9mmt. While Petchem EBITDA grew a robust 56% YoY to Rs12.1 bn on better polymer cracks, pipeline EBITDA saw a decline of 19% due to 20% lower volume. Overall the company expects capex of Rs210 bn in FY21 and expects 100% utilization from Q3FY21...