HPCL Q3 Results Review - Medium-Term Prospects Bright Despite The Near-Term Blip: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Hindustan Petroleum Corporation Ltd. missed our Ebitda estimate for Q3 FY24 due to a lower-than-expected marketing margin of Rs 2.7/litre (estimate: of Rs 3.4/litre) led by suppressed margins on diesel. Refinery throughput was in line at 5.3 million metric tonne (up 11% YoY). The company expects to clock a refining throughput of 22 mmtpa in FY24 (versus 19 mmtpa in FY23) led by the commissioning of expanded capacity at Vizag refinery. Singapore GRM has also rebounded to $7.2/barrel of oil in Q4 FY24 t- date (versus $5.5/bbl in Q3 FY24), which may lead to an improvement in refining margins in the upcoming quarter. In the marketing segment, sales volumes came in 6% above our estimate at 11.9 mmt (up 6% YoY). HPCL expects to clock a marketing sales volume of 44/45 mmtpa in FY24/25. Oil marketing companies are estimated to be generating strong gross marketing margins of Rs 11.0/Rs 8.6 per liter on petrol/diesel currently. Among OMCs, HPCL has the highest leverage to marketing and would benefit the most due to an uptick in marketing margins..Click on the attachment to read the full report:.HPCL Q3 Results: Net Profit Down 88% On Inventory Write-Back.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HPCL Q3 Results Review - Medium-Term Prospects Bright Despite The Near-Term Blip: Motilal Oswal

Among OMCs, HPCL has the highest leverage to marketing and would benefit the most due to an uptick in marketing margins.

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HPCL Q3 Results Review - Medium-Term Prospects Bright Despite The Near-Term Blip: Motilal Oswal

Among OMCs, HPCL has the highest leverage to marketing and would benefit the most due to an uptick in marketing margins.

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