HPCL Q4 results: Net profit dips 25% YoY to ₹2,709 crore; dividend declared, 1:2 bonus issue announced

Hindustan Petroleum Corporation Ltd (HPCL) posted a net profit of ₹2,709.3 crore in the fourth quarter of financial year 2023-24 (Q4FY24), down 25% as compared to ₹3,608.3 crore in the year-ago period, as per the results declared on May 9.

The net profit growth was dampened due to rise in refining margins on account of higher fuel costs, and the inability to pass on its impact, analysts said.

The oil marketing company (OMC) reported a revenue from operations of ₹1.14 lakh crore in the March 2024 quarter, higher by 2.9% as compared to ₹1.11 lakh crore in the same quarter a year ago.

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The average gross refining margins (GRMs) during Q4FY24 stood at $6.95 per barrel, which was lower as compared to $14.01 a barrel in the year-ago period. “The reduction in GRMs is in line with the trend of international product cracks,” HPCL said in a release.

Dividend declared

HPCL said its board of directors has recommended a “final dividend of ₹16.50 per equity share having face value of ₹10 (pre-bonus)”.

This translates into a final dividend of ₹11 per share for FY24, subject to approval of shareholders at the upcoming annual general meeting (AGM), the state-run company added.

The record date for determining the shareholders eligible for the dividend payout is August 9, 2024.

1:2 bonus issue

HPCL’s board has also given its nod for the issuance 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”.

The record date for the bonus issue has been fixed as June 21, 2024, HPCL said in a regulatory filing. The bonus shares would be dispatched to the eligible shareholders by July 8, 2024, it added.

Meanwhile, the shares of HPCL were edging in the red throughout the day, and dropped further following the declaration of Q4 results. The scrip settled at ₹501.8 on the NSE at closing bell, down 4% as against the previous day’s close.