State-controlled oil marketing company Hindustan Petroleum Corporation (HPCL) is expected to report a 6 percent fall in net profit at Rs 300 crore for July-September quarter compared to Rs 319 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales are seen going up by 9 percent to Rs 57,250 crore in the second quarter of current financial year 2014-15 from Rs 52,525 crore in corresponding quarter of last fiscal driven by higher sales volume and nil under recovery.
Operating profit may fall 45 percent year-on-year to Rs 920 crore and margin may decline 160 basis points to 1.6 percent in the quarter gone by.
Factors to watch
Gross refining margin (GRM) is expected to decline year-on-year due to decrease in global margins and inventory loss on account of fall in Brent crude prices.
Average GRMs are expected to be at USD 2.4 a barrel during the quarter as against USD 3.8 a barrel in previous quarter. Brent crude price averaged around USD 102 a barrel, down 9 percent Y-o-Y in rupee terms and down 7 percent in dollar terms.
PAT may also be supported by lower interest cost, which has been a drag on profitability due to untimely subsidy payment by the government.
Full provisioning of subsidy sharing from the government will allow oil marketing companies to declare decent bottomline numbers, feel analysts.
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