HPCL Q4 Results: Profit beats estimate at ₹3,355 crore; ₹10.5 dividend recommended

Shares of state-run Hindustan Petroleum Corporation Ltd. (HPCL) will be among the last of the state-run oil refiners to report their March quarter results on Tuesday, May 6. The stock is at the lows of the day ahead of the earnings announcements.

A CNBC-TV18 poll is pointing to a weak quarter for HPCL. However, expectations have increased from HPCL after its peers BPCL and Indian Oil reported a strong quarter.

Even after a potentially weak quarter, internals for HPCL have improved significantly.

Crude oil prices during the quarter have declined significantly in the month of April, in comparison to the rise of 4% to 5% price rise that took place during the fourth quarter.

The rupee too has seen a sharp appreciation during the first quarter of the new financial year, compared to a fall towards record lows during the March quarter.

For the results, though, a CNBC-TV18 poll expects HPCL's net profit to decline by 27% from the previous quarter to ₹2,220 crore, while revenue is likely to remain flat at ₹1.11 lakh crore.

HPCL's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to be lower by 19% from the earlier quarter, while margins may narrow by 100 basis points.

Gross Refining Margins are seen at $5.46 per barrel from $6.01 in the previous quarter, while the figure during the same quarter last year stood at $7 per barrel.

These are some of the key factors to watch out for going into HPCL's results:

Shares of HPCL have declined to the lowest point of the day ahead of results, currently trading 2.5% lower at ₹399.4.