HPCL Reports Negative Financial Results for Q2 FY25, Investors Advised to Hold Stock

Hindustan Petroleum Corporation Limited (HPCL), a leading player in the oil exploration and refineries industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, HPCL has seen a negative performance in the quarter, with a score of -17, which has improved from -19 in the last three months. This indicates a downward trend in the company’s financials.

One of the major factors contributing to this negative performance is the decline in Profit Before Tax (PBT) less Other Income, which has fallen by 106% compared to the average PBT of the previous four quarters. The Profit After Tax (PAT) has also seen a significant decrease of 94.2% compared to the average PAT of the previous four quarters. This trend is expected to continue in the near term.

The company’s Net Sales have also fallen by 8.2% compared to the average of the previous four quarters. This decline in sales is a cause for concern for HPCL. Additionally, the PBT less Other Income for the quarter is the lowest in the last five quarters, indicating a negative trend in the near term.

Another concerning factor is the high Non-Operating Income, which is 145.42% of the PBT. This suggests that the company’s income from non-business activities is high, which is not a sustainable business model.

Furthermore, the company’s Earnings per Share (EPS) for the quarter is the lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

In conclusion, HPCL’s financial performance for the quarter ending September 2024 has been negative, with a downward trend in key financial indicators. Investors are advised to hold their stock and closely monitor the company’s performance in the coming quarters.