HPCL Q2 results coming today: What to expect

Hindustan Petroleum Corporation (HPCL) is slated to announce its financial results for the quarter to September later in the day.

Sharekhan projected 57.40 per cent year-on-year rise in sales and 23.20 per cent YoY fall in profit after tax in Q2 FY19. The brokerage firm sees 22.50 per cent quarter-on-quarter fall in net profit for HPCL.

“We expect a weak quarter for oil marketing companies (OMCs) on a sequential basis as a rupee depreciation led to forex losses and lower reported gross refining margin (GRM) on account of significant moderation in inventory gains due to limited movement of around $1 per bbl QoQ in oil prices. Benchmark Singapore Complex GRM also largely remained flat QoQ at $6.1 per bbl in Q2 FY2019,” the brokerage house said.


Edelweiss Securities sees 22 per cent YoY and 21.30 per cent QoQ drop in core profit after tax figures for HPCL in July-September.

“Highest exposure to marketing among OMCs will lead to the sharpest fall in EBITDA. We expect fall in throughput (-5.4 per cent YoY) along with lower GRM (-8 per cent yoy). Marketing EBITDA will fall 10.6 per cent YoY as lower marketing margin (-15 per cent y-o-y) will offset higher sales volumes (5.4 per cent YoY),” Edelweiss said in a report.

Shares of HPCL were 2.66 per cent up at Rs 230.05 in the morning trade.