HPCL reported better than expected performance for the quarter ended December 2011 with 41% jump in its total sales to Rs 47917.37 crore compared to corresponding previous year quarter while its bottomline rose multifold to Rs 2725.15 crore from Rs 211.03 crore over the same period. Better than expected performance was due to significant jump in budgetary support received by the company and increased discounts from the upstream companies. Budgetary support rose 277% to Rs 6582.39 crore during the quarter while upstream discounts rose 195% to Rs 3351.35 crore. Subsidy in relation to LPG and SKO amounting to Rs 172.26 crore in Q3FY'12 compared to Rs 168.14 crore in Q3 FY'11 has been accounted as per the scheme approved by the government in January 2003.
Average Gross Refining Margins during the nine months ended December 2011, were USD 2.62 per barrel as against USD 3.96 per barrel during the corresponding previous year period.
Quarterly results for the PSU oil refining and marketing companies has become less relevant as its financial performance is mostly based on budgetary support by the government and the upstream sharing of subsidy burden. Government compensation for full year is decided only at the end of the year. On a consolidated basis HPCL had reported profit of Rs 1703.60 crore in FY'11, Rs 1476.62 crore in FY'10, Rs 757.39 crore in FY'09, Rs 1364.10 crore in FY'08, Rs 1674.02 crore in FY'07 and Rs 452.07 crore in FY'06. So quarterly results may have wide swings based on interim budgetary support by the government but it is expected to remain profitable at the end of year.
HPCL sale of petroleum products were 7% higher at 7.54 million tonne during the quarter while the pipeline throughput was up 8% at 3.49 MMT. The crude throughput of HPCL was flat during the quarter ended December 2011 to 4.08 million tonne compared to corresponding previous year period.
Quarterly Results
HPCL total sales rose 41% to Rs 47917.37 crore for the quarter ended December 2011 compared to corresponding previous year period. This included budgetary support of Rs 6582.39 crore up by 277% on a y-o-y basis. Excluding compensation from the government sales of the company rose 29%.
OPM of the company rose 570 bps to 7.5% as cost of raw material consumed as a percentage to net sales (net of stock adjustments) fell to 30% from 32% and purchase of products for resale fell to 56% from 61% while staff cost remains flat at 1%. However other expenses rose to 6% from 5%. As a result operating profits rose 470% to Rs 3572.52 crore.
Other income fell 4% to Rs 287.60 crore. Interest cost rose by 189% to Rs 698.17 crore. Depreciation rose 20% to Rs 436.77 crore. PBT was up 755% to Rs 2725.18 crore. The company has not considered provision for taxes due to uncertainty in estimation of profits, pending finalization of compensation mechanism for under recoveries on sale of sensitive petroleum products. The company bottomline of the company rose multifold to Rs 2725.15 crore compared to corresponding previous year quarter.
Performance for the nine months ended December 2011
Inspite of robust quarterly performance nine months ended December 2011 results show is dismal. The overall top-line rose 34% to Rs 125745.63 crore compared to corresponding previous year period while bottomline reported loss of Rs 3719.56 crore compared to profit of Rs 416.35 crore in 9MFY'11. The company also reported loss at operating level of Rs 1616.94 crore. Other income fell 9% to Rs 843.22 crore, interest costs surged 159% to Rs 1706.69 crore and depreciation rose 23% to Rs 1240.29 crore. Loss at PBT level was Rs 3720.70 crore.
The scrip is currently trading at Rs 293.80.
HPCL: Standalone Results
| Particulars | 1112. (3) | 1012 (3) | Var (%) | 1112 (9) | 1012 (9) | Var (%) | 1103 (12) | 1003 (12) | Var (%) |
| Net Sales | 41334.98 | 32154.80 | 29 | 115888.55 | 89252.23 | 30 | 124522.66 | 102074.33 | 22 |
| Oil Bonds | 6582.39 | 1747.70 | 277 | 9857.08 | 4579.87 | | 8976.28 | 5563.13 | 61 |
| Total Revenues | 47917.37 | 33902.50 | 41 | 125745.63 | 93832.10 | 34 | 133498.94 | 107637.46 | 24 |
| OPM (%) | 7.5 | 1.8 | | -1.3 | 1.4 | | 2.5 | 2.4 | |
| OP | 3572.52 | 626.74 | 470 | -1616.94 | 1333.65 | PL | 3308.79 | 2543.18 | 30 |
| Other Income | 287.60 | 298.38 | -4 | 843.22 | 927.09 | -9 | 1343.54 | 1646.16 | -18 |
| PBDIT | 3860.12 | 925.12 | 317 | -773.72 | 2260.74 | PL | 4652.33 | 4189.34 | 11 |
| Interest (Net) | 698.17 | 241.66 | 189 | 1706.69 | 658.46 | 159 | 884.00 | 903.75 | -2 |
| PBDT | 3161.95 | 683.46 | 363 | -2480.41 | 1602.28 | PL | 3768.33 | 3285.59 | 15 |
| Depreciation / Amortization | 436.77 | 364.67 | 20 | 1240.29 | 1005.43 | 23 | 1406.95 | 1164.40 | 21 |
| PBT | 2725.18 | 318.79 | 755 | -3720.70 | 596.85 | PL | 2361.38 | 2121.19 | 11 |
| Tax | 0.00 | 107.76 | | 0.07 | 178.93 | | 807.13 | 823.66 | -2 |
| PAT | 2725.18 | 211.03 | 999 | -3720.77 | 417.92 | PL | 1554.25 | 1297.53 | 20 |
| PPA | 0.00 | 0.00 | | -1.21 | 1.57 | | 15.24 | -3.84 | |
| PAT after PPA | 2725.18 | 211.03 | 999 | -3719.56 | 416.35 | PL | 1539.01 | 1301.37 | 18 |
| EPS* (Rs) | 321.9 | 24.9 | | | 16.5 | | 45.9 | 38.3 | |
* Annualized on current equity of Rs 338.63 crore.
Face Value: Rs 10
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items; FBT: Fringe Benefit Tax
EPS is calculated after excluding EO and relevant tax
Figures in Rs crore
Source: Capitaline Corporate Database |
HPCL: Physical Performance
| Particulars | 1112. (3) | 1012 (3) | Var (%) | 1112 (9) | 1012 (9) | Var (%) | 1103 (12) | 1003 (12) | Var (%) |
| Crude Throughput | 4.08 | 4.1 | 0 | 12.23 | 10.43 | 17 | 14.75 | 15.76 | -6 |
| Sales | 7.54 | 7.05 | 7 | 21.75 | 19.81 | 10 | 27.03 | 26.27 | 3 |
| Pipeline throughput | 3.49 | 3.24 | 8 | 10.2 | 9.66 | 6 | 12.98 | 11.95 | 9 |
| Figures in million metric tonne |