HPCL posted its earnings for the quarter ended June on Monday evening.

What Happened: In the April-June quarter, the company’s net profit tanked 90% to ₹633.94 crore, compared to the ₹6,765 crore posted in the same quarter last year. Revenue from operations crawled up 2.5% to ₹1.21 lakh crore, from the ₹1.18 lakh crore posted in the corresponding quarter of the previous year.

Total expenses, on the other hand, went up to ₹1.21 lakh crore, up 9% from the ₹1.11 lakh crore posted in the same quarter last year.

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Shares of oil refiners including HPCL, BPCL, and IOCL were upbeat on Monday after brokerage firm UBS issued upgrades for all three companies. In its note, the analysts said that they expect the oil market to ease after the third quarter of the calendar year 2024. The firm anticipates that oil marketing companies will benefit if their profits shift from the refining segment to the marketing segment.

Among the three companies, HPCL is likely to be the biggest beneficiary in such a scenario, given its higher exposure to the marketing segment, the brokerage added. The brokerage house has upgraded HPCL to a “buy” rating and raised its price target to ₹445 from ₹333.

Price Action: HPCL’s share price was up 1.2% to close at ₹381.05 on Monday.

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