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HPCL in demand on strong Q2 number, buyback

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Capital Market
Last Updated : Nov 05 2020 | 11:05 AM IST

HPCL jumped 7.63% to Rs 201 after solid Q2 results and after the board approved share buyback worth upto Rs 2500 crore.

The board of the state-run oil marketing company approved a proposal to buyback shares worth upto Rs 2500 crore at a maximum buyback price of Rs 250 per equity share. At maximum buyback price and maximum buyback offer size, the indicative maximum number of equity shares to be bought back would be 10 crore equity shares, which is 6.55% of the total number of equity shares of the company. The announcement was made after market hours yesterday, 4 November 2020.

Further, HPCL reported its Q2 September 2020 result on Wednesday. The company's net profit surged 135.4% to Rs 2,247.75 crore on 14.16% decline in total income to Rs 52,590.08 crore in Q2 September 2020 over Q2 September 2019.

Profit before tax stood at Rs 3,292 crore in Q2 September 2020, an increase of 103.59% over Rs 1,616.97 crore in Q2 September 2019. Total tax expense jumped 44.25% to Rs 814.55 crore in Q2 September 2020 over Q2 September 2019.

HPCL said other income of Rs 816.77 crore, include gains of Rs 572.84 crore on account of foreign currency transactions and translations.

Average gross refining margin during the six months ended 30 September 2020 was $2.58 per BBL (barrel of oil) as against $1.87 per BBL during the corresponding period of previous year.

HPCL said that the quarter witnessed substantial recovery from the impact of COVID-19. The corporation continues to closely monitor any material changes to future economic conditions.

HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons. As on 30 October 2020, ONGC held 51.11% in HPCL.

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First Published: Nov 05 2020 | 10:35 AM IST

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