HPCL Q1 Review - Recovery Gains Steam: Centrum Broking
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Centrum Broking Report
Hindustan Petroleum Corporation Ltd.’s recurring Ebitda/profit after tax for Q1 was Rs 32/18 billion (down 27/36% YoY and down 32/40% QoQ), below our Ebitda estimate of Rs 35 billion and adjusted profit after tax estimate of Rs 22.7 billion, with a sharp dip in refining margins and throughput the key reason for the dip and miss versus estimates.
Due to the weaker refining metrics, reported gross margins of Rs 70 billion (including inventory gains) were down 10% YoY and 28% QoQ (our estimate Rs 83.8 billion).
HPCL's marketing segment performed much better than estimates, with in-line volume and blended margins of Rs 4,850/tonne (down 48% YoY / up 10.5% QoQ, ahead of our estimate of Rs 4,290/tonne.
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