HPCL (Q4 FY14)

India Infoline News Service | Mumbai |

HPCL reported 7.5% yoy rise in net sales to Rs641.9bn for Q4 FY14.

CMP Rs411, Target Rs483, Upside 17.5% 
  • Net sales for Q4 FY14 rise 7.5% yoy driven by higher volumes, higher realizations and rupee depreciation

  • Upstream companies shared under recovery burden worth Rs56.7bn in Q4 FY14 v/s Rs11.5bn in Q4 FY13

  • Throughput was flat on yoy basis at 4.3MMT but was higher by 13% qoq owing to maintenance shutdowns at secondary processing units seen in Q3 FY14. GRM for the quarter was at US$4.7/bbl sequentially up by 78%

  • Net profit of Rs46.1bn was reported for the quarter which was substantially ahead of our estimates

  • With recent favorable policy action we upgrade our rating from Market Performer to BUY with a 9-month target price of Rs483

Result table
(Rs mn)
Q4 FY14
Q4 FY13
% yoy
Q3 FY14
% qoq
Net sales
641,923
596,900
7.5
554,550
15.8
Material costs
(168,623)
(190,147)
(11.3)
(180,614)
(6.6)
Purchases
(384,080)
(302,831)
26.8
(360,991)
6.4
Personnel costs
(4,660)
(3,653)
27.6
(5,570)
(16.3)
Other overheads
(25,175)
(13,922)
80.8
(16,682)
50.9
Operating profit
59,385
86,347
(31.2)
(9,307)
(738.1)
OPM (%)
9.3
14.5
-521 bps
(1.7)
1093 bps
Depreciation
(5,793)
(4,914)
17.9
(5,566)
4.1
Interest
(1,985)
(2,852)
(30.4)
(4,432)
(55.2)
Other income
3,303
3,910
(15.5)
1,965
68.1
PBT
54,910
82,492
(33.4)
(17,339)
(416.7)
Tax
(8,817)
(5,699)
54.7
-
-
Effective tax rate (%)
16.1
6.9
-
Adjusted PAT
46,092
76,793
(40.0)
(17,339)
(365.8)
Adj. PAT margin (%)
7.2
12.9
-568 bps
(3.1)
1031 bps
Ann. EPS (Rs)
544.5
907.1
(40.0)
(204.8)
(365.8)
Source: Company, India Infoline Research

Net sales grow by 7.5% on back of growth in product sales and realizations

Hindustan Petroleum Corporation Ltd (HPCL) reported 7.5% yoy rise in net sales to Rs641.9

BSE 423.40 8.70 (2.10%)
NSE 423.35 8.40 (2.02%)

***Note: This is a NSE Chart

 

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