HPCL Q4 Review - Rising Debt Levels A  Concern: Motilal Oswal
An employee counts Indian rupee banknotes as he and his colleague wait for customers at a Hindustan Petroleum Corp. gas station in New Delhi, India (Photographer Prashanth Vishwanathan/Bloomberg)

HPCL Q4 Review - Rising Debt Levels A Concern: Motilal Oswal

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Motilal Oswal Report

Hindustan Petroleum Corp. reported a beat on Ebitda led by better-than-estimated marketing sales volumes (up 9% estimate, at 10.1 million metric tonne), refining (at $8.1/barrel of oil) and marketing margin (at Rs 6/litre).

Marketing volumes decline for the company was at 6.6% versus ~9% for the industry in FY21, resulting in a gain in market share.

Since April 2021, there is contraction in demand for petroleum products due to localised lockdowns (with petrol/diesel consumption down 30% in May 2021 versus May 2019).

As per our calculations, gross marketing margin for petrol/diesel stands at down Rs 0.3/ up Rs 3/litre currently.

Click on the attachment to read the full report:

Motilal Oswal HPCL Q4FY21 Result Update.pdf

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