HPCL shares jump 3% on bonus issue, dividend payout

Shares of Hindustan Petroleum Corporation Limited (HPCL) rose nearly 3% in opening trade on Friday after the state-owned company released its earnings report for March quarter of FY24. The sentiment was also lifted after the board of the oil marketing company recommended a bonus issue of 1:2 (one for two) and a final dividend of ₹16.5 per share.

Snapping previous session losses, HPCL shares opened higher at ₹510, after ending 4.1% lower at ₹501.30 on the BSE in the previous session. In the early trade so far, the PSU oil stock gained as much as 2.57% to ₹514.20, while the market capitalisation rose to ₹72,942 crore.

HPCL shares touched its 52-week high of ₹594.45 on February 16, 2024, and a 52-week low of ₹239.25 on October 26, 2023. In the last one year, the stock has delivered 97% return to its shareholders, while its shares surged 26% in the calendar year 2024.    

For the fourth quarter ended March 31, 2024, HPCL posted nearly a 25% year-on-year (YoY) fall in its consolidated net profit at ₹2,709.31 crore, dented by lower refining margins. On standalone basis, the net profit was down 11.8% YoY at ₹2,842.8 crore, the company said in a BSE filing on May 9.

The consolidated total income came in at ₹1.22 lakh crore, up 6% from the same period of the previous year.

HPCL ended the financial year 2024 on a strong note, posting consolidated profit after tax (PAT) of ₹16,015 crore compared to net loss of ₹6,980 crore during the previous financial year. The Standalone PAT during FY24 was also highest ever at ₹14,694 crore versus loss of ₹8,974 crore during FY23.

The average GRMs (gross of export duty) for the FY24 were $9.08 per barrel versus $12.09 a barrel during the previous fiscal. For the March quarter of FY24, average GRMs were $6.95 per barrel against $14.01 per barrel during the corresponding period of previous year. “The reduction in GRMs was in line with the trend of international product cracks,” the company said in its earnings report.

The board of directors of HPCL approved the issue of bonus shares in the ratio 1:2 i.e., one new bonus equity share of ₹ 10 each for every two existing equity shares of ₹10 each fully paid up, subject to the approval of members of the company. It also recommended a final dividend of ₹16.50 per equity share having face value of ₹10 (pre-bonus), which translates into a final dividend of ₹11 per equity share for FY24. This final dividend is in addition to the interim dividend paid for FY24 at ₹15 per share.

In terms of physical performance, HPCL refineries processed the highest ever crude thru-put of 22.33 MMT (million metric tonnes) during the year, operating at 103.3% of the installed capacity, registering an increase of 17% over crude thru-put of 19.09 MMT processed during FY23.

On the marketing front, HPCL achieved the highest-ever total sales volume of 46.82 MMT (including exports) during FY24, registering a growth of 7.8% as against 43.45 MMT during the previous year. The company also achieved a market share gain of 0.47% amongst PSU oil marketing companies, it said in the exchange filing.

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