Hindustan Petroleum Corporation (HPCL)’s shares have rallied 8 per cent and hit a 52-week high of Rs 288.15 on the BSE on Friday after reporting a many-fold jump in its March quarter (Q4FY21) net profit to Rs 3,018 crore on the back of inventory gains and rise in refining margins. The state-owned oil marketing company had a net profit of Rs 27 crore in January-March 2020 (Q4FY20).

The company announced a final dividend of Rs 22.75 per share, translating to dividend yield of 9 per cent for FY21. It also completed its share buyback program on April 20, 2021.

“HPCL’s marketing sales volumes were 9 per cent above est. at 10.1mmt (+6 per cent YoY). The marketing margin stood at Rs 6/lit (v/s our est. of Rs 5.2; +64 per cent YoY and +15 per cent QoQ)”, Motilal Oswal Securities said.

The company earned $8.11 on turning every barrel of crude oil into fuel in the January-March period. This is compared with a negative gross refining margin (GRM) of $1.23 per barrel (BBL). The average GRM during the year ended March 31, 2021 was $3.86 per BBl as against US 1.02 per BBl during the corresponding previous year.

 HPCL was trading 5 per cent higher at Rs 280 on the BSE, as compared to 0.8 per cent rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined around 15 million equity shares changing hands on the NSE and BSE.

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