HPCL's Q4FY16 standalone net profit rises 28.18% yoy to Rs.1,552.94 crore : In line with Estimates

The company’s standalone revenue stood at Rs. 42,195.24 crore, down 5.42% yoy and 3% qoq.

May 27, 2016 2:00 IST | India Infoline News Service
Hindustan Petroleum Corporation (HPCL), Navratna' oil and natural gas company, reported standalone net profit of Rs.1,552.94 crore for the quarter ended March 31, 2016, registering decline of 28.18% yoy, but growth of 49% qoq. The company’s standalone revenue stood at Rs. 42,195.24 crore, down 5.42% yoy and 3% qoq.

Its standalone core operating profit of Rs. 2,661.33 crore for the quarter, declined by 10.59% yoy but clocked growth of 18.79% qoq. Operating profit margin for the current quarter at 6.31% contracted by 36 bps yoy but expanded by 116 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 3,862.74 crore, growing by 41.32% yoy. Its standalone revenue for the period stood at Rs. 1,79,571.19 crore, registering decline of 13.09% yoy.

Hindustan Petroleum Corporation Ltd's core operating profit stood at Rs. 7,906.93 crore, recording growth of 54.26% yoy. Operating margin for the current period at 4.77% expanded by 229 bps yoy.

HPCL (Q4 FY16) – Refining beat, marketing lower than expectations:

During Q4 FY16, HPCL reported net sales of Rs42,195cr which was higher than IIFL expectations. Market sales at 9.1mn tons were higher than IIFL expectations and represented a growth of 10.5% yoy and 8.7% qoq. Net sales were lower by 5.4% yoy and 3% qoq due to lower realizations as prices have been cut in line with decline in crude oil prices. GRMs were at US$7.5/bbl compared to IIFL estimate of US$6.5/bbl but marketing margins were lower than IIFL expectations. Operating profit at Rs. 2,661cr was lower than IIFL expectations but higher than estimated other income and lower than expected tax rate resulted in an in line with estimated PAT.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 42195.24 41247 2.30
Standalone Net Profit 1552.94 1598 [2.82]

Standalone EPS for the quarter stood at Rs. 45.86.

Bloomberg estimated the company’s consolidated net profit at Rs. 1,300.75 crore.

Corporate Action: Hindustan Petroleum Corporation  (HPCL)’s board of directors at its meeting held on May 27, 2016, inter alia, has recommended a final dividend of Rs. 16.00 per equity share.

Stock Commentary:

Hindustan Petroleum Corporation Ltd ended at Rs. 930.9, up by 83.2 points or 9.81% from its previous closing of Rs. 847.7 on the BSE.

The scrip opened at Rs. 861 and touched a high and low of Rs. 953.5 and Rs. 861 respectively. A total of 7230024(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 28705.67 crore.

The BSE group 'A' stock of face value Rs. 10 touched a 52 week high of Rs. 991 on 10-Aug-2015 and a 52 week low of Rs. 615 on 27-May-2015. Last one week high and low of the scrip stood at Rs. 852.9 and Rs. 800.7 respectively.

The promoters holding in the company stood at 51.11 % while Institutions and Non-Institutions held 33.3 % and 15.59 % respectively.

The stock traded below its 50 DMA.

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