Hindustan Petroleum Corporation Ltd. (HPCL) has reported a strong topline growth of 42.3%. The increase in sales is due to higher realisations with petroleum prices hiked by the Government towards the end of the previous quarter (2QFY01). However, higher merchant sales also seems to have contributed to the growth.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
The operating profits of the company have risen impressively. This could be driven by higher sales and the marginal improvement in OPM by 20 basis points.
The interest expense of the company has increased substantially. This is resultant to the difficult industry scenario prevailing. The rise in feedstock prices (crude oil) has increased working capital requirements. Further, with dues blocked in the oil pool account, the company has had to resort to short term borrowings to overcome the gap in working capital. This has adversely impacted the bottomline.
Despite the substantial rise in interest expense the bottomline has grown significantly. The jump in other income has provided some reprieve to the company's bottomline.
HPCL at Rs 176 is trading at a multiple of 4.4x on 3QFY01 annualised earnings. However, on 9 months annualised earnings the company is trading on a multiple of 6.2x.
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