Mumbai: State-run oil marketing company Hindustan Petroleum Corporation (HPCL) disappointed analysts on its quarterly earnings front as profit fell sharply by 66.6 percent quarter-on-quarter to Rs 701.3 crore due to weak operational performance.
Revenue during the quarter declined 7.4 percent to Rs 47,822.5 crore compared with Rs 51,661 crore in previous quarter.
EBITDA (earnings before interest, tax, depreciation and amortisation) plunged 65.2 percent sequentially to Rs 1,261 crore and margin contracted by 442 basis points to 2.6 percent in the quarter ended September 2016.
Other income during the quarter doubled to Rs 546.91 crore from Rs 275.26 crore on sequential basis while tax expenses declined 64.5 percent QoQ to Rs 374.13 crore.
HPCL said gross refining margin during the half year ended September 2016 was USD 5.12 per barrel against USD 5.45 a barrel during the corresponding period of last fiscal.
The company has accounted for budgetary support of Rs 692 crore in H1FY17 towards under recovery on sale of public distribution system kerosene. At 12:49 hours IST, the stock was quoting at Rs 416.80, down Rs 31.70, or 7.07 percent on the BSE.