Hindustan Petroleum Q4 Results Preview: Profit May Rise 44% After Crude Throughput Improves
Net profit of the public sector undertaking may rise 44% sequentially to Rs 2,938.73 crore in the quarter ended March 2024, according to Bloomberg consensus estimates as of May 2.
Hindustan Petroleum Corp. might post strong fourth-quarter earnings on the back of healthy gross margins and better crude throughput. Net profit of the public sector undertaking may rise 44% sequentially to Rs 2,938.73 crore in the quarter ended March 2024, according to Bloomberg consensus estimates as of May 2.
While the oil marketer's revenue's are expected to fall sequentially; , margins are expected to improve by 280 basis points.
Hindustan Petroleum Corp. Q4 Estimates (Standalone, QoQ)
Revenue may fall 7% to Rs 1.10 lakh crore.
Ebitda may rise 2.32 times to Rs 5,018.88 crore.
Margin may expand to 4.6% vs 1.8%.
Net profit may rise 44% to Rs 2,938.73 crore
What Do Brokerages Have To Say?
Financial Metrics
Nomura expects Bharat Petroleum to deliver a strong fourth quarter. The company stands to gain from rising refining margins, a significant 65% increase in marketing margins to Rs 4.8 per litre, and inventory gains due to higher crude prices, according to the brokerage. Nomura expects the overall Ebitda of Hindustan Petroleum to gain 2.4 times sequentially to Rs 5,240 crore.
Prabhudas Lilladher expects Hindustan Petroleum's operating profit to improve quarter-on-quarter due to better refining and marketing margins. The brokerage expects the oil marketer's Ebitda and net profit to rise 71% and 2.5 times quarter-on-quarter, respectively.
Volumes
Vizag refinery's February 2024 throughput suggests that the refinery has been fully commissioned for a capacity of 15 million metric tonne per annum, according to Dolat Capital. On account of this, the brokerage expects Hindustan Petroleum's crude throughput to rise sharply by 13% quarter-on-quarter and 21% year-on-year at 12.7 million metric tonne.
In terms of domestic sales, Nomura expects a 5.5% quarter-on-quarter rise to 12 million metric tonne. Whereas, for export sales, the brokerage expects a 30% sequential increase to 0.7 million metric tonne.
Marketing Margins
Dolat Capital believes that supernormal gross marketing margins would be the real earnings driver for Hindustan Petroleum. While, Prabhudas Lilladher estimates a gross refining margin of $12 per barrel and a blended (petrol and diesel) gross marketing margin of Rs 3.3 per litre.
Nomura expects gross refining margins to rise 44% quarter-on-quarter to $12.2 per barrel.
