After subdued Q4FY20, all eyes on recovery in FY21 for HPCL
MUMBAI: State-owned oil marketing company (OMC), Hindustan Petroleum Corp. Ltd’s (HPCL) March quarter results were weak. The company reported a standalone net profit of ₹27 crore, a sharp 99% decline from the year-ago period. But that shouldn’t come as a surprise for investors considering the covid-19 led demand disruptions during the quarter.
“Adjusted for tax reversal and prior period taxes, HPCL’s net loss came in at ₹1,380 crore versus our estimate of an ₹1,840 crore loss,” wrote analysts from Nomura Financial Advisory and Securities (India) Pvt. Ltd in a report on 16 June.
HPCL like its larger peer, Bharat Petroleum Corp. Ltd (BPCL), saw massive inventory losses during the quarter. It’s worth noting that HPCL was able to report better core gross refining margin (GRM) compared with BPCL.
