Hindustan Petroleum Q2 Results: Profit Beats Estimates As Other Income Rises, Tax Expense Falls
Hindustan Petroleum Corp.'s quarterly profit rose beating estimates as other income jumped and tax expenses fell.
The oil refiner's net profit increased 7% sequentially to Rs 1,923.5 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 1,676.6-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 14.7% to Rs 83,064.5 crore, against the Rs 77,564.9-crore forecast.
Operating profit fell 5.6% to Rs 3,013.6 crore.
Other income increased 20.8% to Rs 449.4 crore.
Operating margin contracted to 3.6% from 4.4%.
Total tax expenses fell 27.3% to Rs 437.7 crore.
Gross refining margin—what a company earns by converting one barrel of crude into fuel—stood at an average of $2.87 a barrel between April-September 2021 compared with $2.58 a year ago.
The company’s refining margin was supported by an increase in benchmark GRM and improved product spreads. Benchmark Singapore GRM rose 76% sequentially to $3.7 a barrel in the second quarter.
Higher crude oil prices, too, led to inventory gains. Brent crude averaged at $73.2 a barrel, a 5.9% rise over the preceding quarter, Bloomberg data showed. Petrol, diesel and jet fuel spreads jumped 20%, 2%, and 16% sequentially.
Sales volumes rose 4% quarter-on-quarter to 8.79 million metric tonnes, supported by higher demand for petroleum products after pandemic-related restrictions were eased. Crude throughput rose 0.8% to 2.53 MMT.
India's overall consumption of petroleum products rose 2.5% sequentially to 48.42 MMT in the quarter ended September, data from Petroleum Planning and Analysis Cell showed.
Prices of petrol and diesel were increased 2.9% and 0.9%, respectively, between July 1 and Sept. 30, compared with a 3.5% rise in Brent crude price.
Shares of HPCL were trading 1.03% lower after the results were announced compared with a 0.11% fall in the BSE Sensex.