HPCL skids into worst fall in over a month after quarterly losses continue

Shares of Hindustan Petroleum Corporation (HPCL) tumbled almost 4 percent on November 4 after the state-owned oil retailer reported a standalone net loss of Rs 2,172 crore for the quarter ended September 2022, against a loss of Rs 10,197 crore recorded in the June quarter.

The company had posted a profit of Rs 1,923 crore in the same quarter last fiscal.

At 10:30am, the stock was quoting Rs 202.75 on the National Stock Exchange, down by 3.89 percent. It saw its worst fall in over a month and neared its 52-week low of Rs 200.05 apiece.

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During the quarter, the company’s revenue declined 5.3 percent sequentially to Rs 1.08 lakh crore from Rs 1.14 lakh crore in the June quarter. However, revenue jumped 30 percent on-year.

Losses were limited by the Government of India's one-off compensation, noted analysts. The government recently approved a one-time grant of Rs 5,617 crore to compensate under-recoveries incurred on sale of domestic LPG during financial year 2021-22 and current period, which was duly recognised in July–September 2022, the company said.

Average gross refining margin (GRM) for the period April-September 2022 was $12.62 per barrel as against $2.87 per barrel in the same period last year.

Foreign brokerage firm CLSA has an 'outperform' call on the stock but has cut the target price to Rs 235 from Rs 270 per share. "The H1 net loss at 32 percent of book value due to large marketing losses. We assume a larger net loss in FY23," CLSA said. However, restart of auto fuel price hikes may be a positive trigger going ahead.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.