The scrip traded 2.27 per cent up at Rs 217.90 at around 9.40 am (IST), while the benchmark BSE Sensex was up 0.63 per cent at around the same time.
Analysts hold mixed views on the upcoming quarterly results of the oil retailer. Sharekhan sees a 168 per cent year-on-year (YoY) growth in net profit of HPCL on 38.40 per cent YoY fall in sales.
The brokerage believes that the marketing earnings will benefit from sharp improvement in auto fuel marketing margin.
“Given the rise in oil price, we expect refinery and product inventory gains of Rs 1,199 crore. Core GRM to be at $1.1 per bbl. However, refinery utilisation to decline to 95 per cent and overall marketing sales volume expected at 7.3mmt (down 26 per cent q-o-q) due to lower demand amid Covid-19 led lockdown,” it said.
However, an assessment by Edelweiss Securities projects a 77.40 per cent year-on-year fall in net profit of HPCL on 47.10 per cent decline in revenue.
“HPCL should see EBITDA contraction of 38.4 per cent YoY due to extremely weak refining margins. We expect reported GRM at $ -2 per barrel leading to a refining loss. Higher core marketing margins will be offset by lower marketing sales volume, driving an 18 per cent YoY contraction in marketing EBITDA. We expect some inventory gains in Q1,” Edelweiss said.