HPCL business boomed
New Delhi: Hindustan Petroleum Corporation Limited (HPCL) continued its upward journey and gained 8 per cent in trade on Wednesday on the back of strong results.
On Tuesday, HPCL was up by more than 6 percent while Indian Oil was up by more than 5 percent.
HPCL was up 8.3 per cent at Rs 302 on BSE. There was a rise of more than 3 percent in BPCL.
Hindustan Petroleum Corporation (HPCL) reported better-than-expected second quarter results with EBITDA of Rs 82.2 billion and PAT of Rs 51.2 billion.
Refining margin and gross marketing margin (GMM) came in at US$13.3/bbl and Rs 5.9/litre, respectively, ahead of estimates. Going forward, we construct a GRM of US$6/bbl and a GMM of Rs 4.5/litre for FY25-26E, Prabhudas Lilladher said in a report.
HPCL commissions fully convertible hydrocracker unit at Vizag, which will help improve distillate yields. Refinery will increase to 13 -13.5 MMT in the third quarter. 72 per cent of the Rajasthan refinery has been completed and is expected to commence operations in CY24. Out of the total cost of Rs 730 billion, capital expenditure of Rs 370 billion has already been made. A GRM of US$20 per bbl can be expected after commissioning.
HPCL is the largest seller of ethanol in the country and has achieved 12 per cent blending. CBG plant in Uttar Pradesh has become operational and is in advanced stage of starting CBG retail sales. The company has 22,000 retail outlets and 9.3 crore LPG customers, the report said.
