HPCL's Q1 FY25 Financial Results Show Negative Performance, Stock Call 'Hold'

Jul 29 2024 09:00 PM IST
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HPCL's financial results for the quarter ended June 2024 have shown a decline in key financial indicators, with a negative financial score of -18. The company's PBT and PAT have decreased significantly, and its operating profit margin and EPS are the lowest in the last five quarters. Investors are advised to hold their positions in the stock.

Hindustan Petroleum Corporation Limited (HPCL) has recently announced its financial results for the quarter ended June 2024. The company, which operates in the oil exploration and refineries industry, has seen a negative financial performance in this quarter. As per MarketsMOJO, the stock call for HPCL is ‘Hold’.

The company’s financial score has fallen to -18 from -1 in the last three months, indicating a decline in its overall financial health. The profit before tax (PBT) has also decreased by 94.4% to Rs 259.81 crore, compared to the average PBT of the previous four quarters which was Rs 4,645.83 crore. This trend is expected to continue in the near term.


Similarly, the profit after tax (PAT) has fallen by 84.2% to Rs 633.94 crore, compared to the average PAT of the previous four quarters which was Rs 4,003.65 crore. The operating profit (PBDIT) for this quarter is also the lowest in the last five quarters, at Rs 2,088.74 crore. This indicates a negative trend in the company’s operating profit.


The operating profit margin for this quarter is also the lowest in the last five quarters, at 1.83%. This suggests a decline in the company’s efficiency. The non-operating income for this quarter is 67.73% of the PBT, which indicates that the company’s income from non-business activities is high. This may not be a sustainable business model in the long run.


The earnings per share (EPS) for this quarter is also the lowest in the last five quarters, at Rs 2.98. This shows a decline in the company’s profitability and its ability to generate earnings for its shareholders. Additionally, the debtors turnover ratio for the last five half-yearly periods is the lowest at 49.35 times. This indicates that the company’s pace of settling its debtors has slowed down.


In conclusion, HPCL’s financial performance for the quarter ended June 2024 has been negative, with a decline in key financial indicators. Investors are advised to hold their positions in the company’s stock, as per MarketsMOJO’s recommendation.


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