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

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.

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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