HPCL rallies 6% after board approves Rs 2,500 cr buyback plan

Shares of Hindustan Petroleum Corporation (HPCL) climbed 6 per cent in Thursday’s early trade after the board of the oil marketing company approved a Rs 2,500 crore share buyback plan as the company management feels the share price is lower than the value it deserves.

In a stock exchange filing, HPCL said it will buyback up to 10 crore shares for no more than Rs 250 per share. The scrip traded 5.97 per cent higher at Rs 197.45 at around 9.37 am (IST), while the benchmark BSE Sensex traded 1.32 per cent higher at 41,150.

The company plans to buyback 6.56 per cent of the total shares.


In another update, the company on Wednesday posted more than doubling of its second-quarter net profit on the back of a surge in refining margins and inventory gains.

Net profit in July-September came at Rs 2,477 crore as compared to Rs 1,052 crore a year back.

On the other hand, revenue at Rs 61,340 crore was lower than Rs 66,165 crore of Q2 of the previous financial year due to lower oil prices.

The firm earned $5.11 on turning every barrel of crude oil into fuel in the second quarter of 2020-21 fiscal as compared to a gross refining margin of $2.83 a barrel.