24, February, 2024
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HPCL Faces Market Headwinds: Q3 Profit and Revenue Below Expectations

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Hindustan Petroleum Corporation Limited (HPCL) encountered a setback as its Q3 performance fell short of estimates, leading to a 5% dip in its stocks. The net profit for the quarter was recorded at Rs. 529 crore, marking a significant YoY growth but witnessing a substantial 90% drop from Q2.

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Despite a momentary 8% decline during today’s trading session, HPCL’s stocks managed to recover slightly, closing at Rs. 430.60—a nearly 5% decrease from the previous day’s closing.

In terms of revenue from operations, excluding excise, HPCL saw a 2% YoY increase, reaching Rs. 1.11 lakh crore, accompanied by a notable 16% sequential surge.

Announcing an interim dividend of Rs. 15 per share, HPCL has set February 7 as the record date for determining eligible shareholders. The dividend distribution is scheduled on or before February 23.

Total expenses, incorporating excise duty and finance costs, rose to Rs. 1.18 lakh crore from Rs. 1.16 lakh crore a year ago, and Rs. 96,221 crore in the previous quarter. This interim dividend practice is common before the annual general meeting and financial results publication.

Looking ahead, HPCL faces challenges as its gross refining margin (GRM) for Q3 was calculated at $13.5 per barrel, falling short of the estimated $15.5 per barrel. This figure is comparable to Indian Oil Corporation’s reported GRM of $13.5 per barrel for the December quarter.

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Gross refining margin is a crucial metric representing the difference between the value of refined products and the cost of crude oil and other inputs used in their production. The coming days will unveil how HPCL navigates these challenges and strategizes for sustained growth.

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