Hindustan Petroleum Corporation Ltd. (HPCL) has reported a strong topline growth. The increase in sales maybe due to strong growth in merchant sales.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy)
Diluted Earnings per share*
Despite the growth in sales operating profits are down. The decline in operating profits is primarily due to the sharp drop in OPM. With crude oil prices (feedstock) remaining firm throughout the quarter (above $30/ barrel) the OPM has taken a beating. OPM has plummeted 410 basis points.
Pre-tax profits have been impacted due to the sharp rise in interest costs. The rise in interest is on account of increased working capital requirement. The funds are required to bridge the gap created due to the non-receipt of dues from the oil pool account (OPA).
HPCL at Rs 103 is trading at a multiple of 3.9 on 2QFY01 annualised earnings.
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