HPCL Q4 Review - Keep The Faith: Centrum Broking

A Hindustan Petroleum Corp. gas station stands at Connaught Place in New Delhi, India. (Photographer: Ruhani Kaur/Bloomberg)

HPCL Q4 Review - Keep The Faith: Centrum Broking

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

Hindustan Petroleum Corp. reported an eight-quarter high Ebitda of Rs 46.7 billion (up 41% QoQ, two times of our estimate Rs 22 billion) and an all-time high adjusted profit after tax of Rs 30 billion (up 28% QoQ, two times our estimate) versus Q4 FY20 Ebitda loss of Rs 7.1 billion and net adjusted loss of Rs 7.7 billion.

Reported gross margin of Rs 96.8 billion was boosted by ~Rs 40.5 billion of inventory gains (Rs 29.8 billion in marketing, Rs 10.7 billion or $4.6/ barrel of oil in refining).

Even core gross refining margins of $3.5/bbl were much higher than our estimate of $2/bbl while market volumes of 10.14 million tonne (up 6/down 2.5% YoY/QoQ) also came ahead of estimates of 9.8 million tonne.

Click on the attachment to read the full report:

Centrum Broking HPCL - Q4FY21 Result Update .pdf


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