State-owned oil marketing company Hindustan Petroleum Corporation Limited (HPCL) is expected to reveal its profit for the October-December quarter later today (January 23). Zee Business Research expects the downstream oil company to report positive performance after an increase in refining margins in the review quarter. Also, analysts expect that HPCL may emerge as the biggest gainer amidst the increase in total marketing volume.
For the reporting quarter, the oil marketing company’s net profit may have increased by a whopping 297.6 percent sequentially to Rs 2,510 crore while the same for the September quarter stood at Rs 631 crore. Revenue, however, at the PSU is likely to grow by 3.5 percent in the quarter to Rs 1,02,916 crore. In the September quarter, the company’s revenue was Rs 99,413 crore.
Also, the oil company behind a 28 percent share in LPG distribution is expected to export LPG under a receipt of Rs 2,596 crore. The poor supply of LPG is mainly the loss incurred by government oil marketing companies (OMCs) when they sell LPG to consumers at a price lower than the cost of production.
According to reports, the agency is busy providing a subsidy of Rs 35,000 crore to the government of Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) to meet the losses of these companies. come in by selling fuel for this money.
How will HPCL perform in Q3?
In the period under review, the company is likely to post Rs 5,252 crore in EBITDA or earnings before interest, taxes, depreciation and amortization, marking a whopping 137.5 percent increase in the quarter. In the September quarter, EBITDA was reported at Rs 2,212 crore. Also, the EBITDA margin was seen to rise to 5 percent, 2.8 percent or 280 points increase respectively.
Refinery output- the amount of crude oil processed by the refinery into different products during the December quarter was also seen to increase by 18.5 percent sequentially.
Price performance of HPCL
In the last one year, the stock has increased by 15 percent, and later the stock has been registering a correction. Ahead of its earnings later today, the company’s shares were trading 1.6 percent lower at Rs 364 per share.