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Dolat Capital Report
Hindustan Petroleum Corporation Ltd.'s gross profit of Rs 151 billion (+319% YoY, +52% QoQ), 16% ahead of our estimates. The sharp improvement was due to-
super-normal marketing margins on auto fuel;
oil product sales increased and gained market share;
refinery throughput increased and utilisation at a peak of 106%, Vizag refinery touched 11 million metric tonne; and
record pipeline throughput.
HPCL posted gross refining margin of $7.44/barrel of oil lowest among the oil marketing companies mainly due to-
Russian crude processed only 22% (lower than country average of ~35%); and
Vizag refinery is still in the stabilisation phase.
Ebitda of Rs 96.5 billion (+177% YoY, +101% QoQ), profit after tax of Rs 62 billion (+161% YoY, +93% QoQ), 23% ahead of our estimate.
Considering the higher marketing margins we increase assumptions for the FY24E but maintained for FY25E. We maintain 'Accumulate' with a revised target price of Rs 312 (versus earlier Rs 301).
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