- 20 May 2022
- ICICIdirect Research
HPCL POSTS Q4FY22 RESULTS
HINDPETRO - 388 Change: 3.10 (0.81 %)News: Revenue increased 1.8% QoQ to Rs. 105288.5 crore in Q4FY22. Marketing sales were in line with expectations at 10.3 MMT, up 3.1% QoQ. HPCL achieved crude throughput of 4.7 MMT, up 10.6% QoQ during the quarter and was broadly in line with estimate. Reported GRMs were at US$ 12.6/bbl while core GRMs were below expectations and came in at US$ 6.4/bbl during the quarter. EBITDA came in at Rs. 2098.6 crore, up 12.2% QoQ. Other income of Rs. 1597.9 crore was higher than expected. Consequently, reported PAT was at Rs. 1795.3 crore, up 106.6% QoQ. The company declared final dividend of Rs. 14/share
Views: While GRMs were below expectations, higher other income led to better-than-expected earnings. Marketing segment losses were lower than expectations during the quarter as per our understanding. HPCL’s crude throughput and marketing sales improved QoQ during Q4FY22. In the current quarter (Q1FY23-TD), with sharp rise in global product cracks, sustained GRMs are likely to drive profitability. Improvement in refining profitability along with passing on higher retail prices of petrol & diesel (due to increase in crude oil costs) to customers will be important for HPCL's performance in the near term
Impact: Neutral