HPCL Announces Quarterly Results (3QFY19); Net Profit Down 87.3%
Wed, 13 Feb

HPCL has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

HPCL Quarterly Financials

No. of Mths
Qtr. Ending
3
Dec-17*
3
Sep-18*
3
Dec-18*
QoQ ChangeYoY Change
Net SalesRs m628,317733,761771,8245.2%22.8%
Other incomeRs m7,1887,1343,937-44.8%-45.2%
TurnoverRs m635,505740,895775,7614.7%22.1%
ExpensesRs m599,176712,541762,1927.0%27.2%
Gross profitRs m29,14118,2209,632-47.1%-66.9%
DepreciationRs m6,7997,3857,3930.1%8.7%
InterestRs m8992,0071,472-26.7%63.8%
Profit before taxRs m28,63115,9624,704-70.5%-83.6%
TaxRs m9,1345,0422,228-55.8%-75.6%
Profit after taxRs m19,49710,9202,476-77.3%-87.3%
Gross profit margin%4.62.51.2
Effective tax rate%31.931.647.4
Net profit margin%3.11.50.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 22.8% on a year-on-year (YoY) basis. The expenses were up by 27.2% YoY during the same period.
  • The company's operating profit declined by 66.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 1.2% in 3QFY19 as against 4.6% in 3QFY18.
  • Depreciation charges increased by 8.7% and finance costs increased by 63.8% YoY, respectively.
  • Other income declined by 45.2% YoY during the quarter.
  • Net profit for the quarter declined by 87.3% YoY. Net profit margins during the quarter declined from 3.1% in 3QFY18 to 0.3% in 3QFY19.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 5.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 7.0% QoQ during the same period.
  • The company's operating profit declined by 47.1% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 1.2% in 3QFY19 as against 2.5% in 2QFY18.
  • Net profit for the quarter declined by 77.3% QoQ, while net profit margins declined from 1.5% in 2QFY18 to 0.3% in 3QFY19.

To see how HPCL has performed over the last eight quarters, please visit here.

HPCL Share Price Performance

Over the last one year, HPCL share price has moved up from Rs 391.5 to Rs 227.8, registering a Loss of Rs 163.7 or around 41.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 13,375.3 (down 0.5%). Over the last one year it has moved down from 15,637.8 to 13,375.3, a gain of 2,263 points (down 14.5%).

Overall, the S&P BSE SENSEX is up 5.8% over the year.

Current Valuations

At the current price of Rs 227.8, the price to earnings (P/E) ratio of HPCL stands at 7.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.4 times.