HPCL shines in Q1, profit jumps 30%; declares 2:1 bonus issue

Oil marketing company Hindustan Petroleum Corporation (HPCL) said profit in April-June quarter jumped 30 percent to Rs 2,098.4 crore compared to year-ago period. Better operational performance after fall in crude oil prices aided the bottomline. Revenue declined 5.8 percent year-on-year to Rs 51,661 crore in the

quarter ended June 2016. Earnings beat analysts' expectations on all parameters. Profit was estimated at Rs 1,368 crore on revenue of Rs 48,480 crore while operating profit was expected at Rs 2,748 crore and margin at 5.7 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18. Earnings before interest, tax, depreciation and amortisation (EBITDA - operating profit) grew by 17 percent year-on-year to Rs 3,626.8 crore and margin expanded by 130 basis points to 7 percent in June quarter. Gross refining margin (GRM), the difference between total value of petroleum products and price of crude, stood at USD 6.83 a barrel during the quarter against USD 8.56 a barrel, which was far ahead of expectations of USD 4.9 per barrel. HPCL said crude throughput increased 19.5 percent year-on-year to 4.48 million metric tonnes (MMT). Pipeline throughput stood at 4.65 MMT against 4.64 MMT in same period. Domestic sales grew by 5.1 percent to 8.89 MMT in the quarter ended June 2016. HPCL's board has recommended issue of bonus shares in the ratio of two shares for every one share held. The board members also approved expansion of Vizag refinery to 300,000 barrels per day at investment of Rs 20,928 crore.