- 13 May 2023
- ICICI Securities
Hindustan Petroleum Corporation Q4 Results 2023: Reports strong GRMs
Hindustan Petroleum Corporation Ltd | CMP: 328 | Market Cap: 69,856.43
HPCL reports strong GRMs
Hindustan Petroleum Corporation’s (HPCL) Q4FY23 results were better higher than estimates on profitability front. While GRMs were higher than estimates, marketing margins were likely below estimates, as per our understanding.
Q4FY23 Earnings Summary
Views: HPCL's operating profit improved QoQ due to strong refining margins and improvement in marketing segment performance. In the current quarter, GRMs are expected to be subdued but likely to be countered by better marketing margins. However, we expect GRMs to improve in H2FY24 with anticipated increase in demand. HPCL's refining capacity is expected to increase with expansion plans at its wholly owned Visakh refinery from 8.3 MMTPA to 15 MMTPA, and a 9 MMTPA refinery cum petrochemical complex (74% stake) in Rajasthan.
Impact: Positive