OMC stocks dip despite robust Q4FY17 performance

The stocks of oil marketing companies (OMCs), including those of Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) dropped 5 per cent on the BSE on Friday, despite putting up good quarterly performance.

The Indian Oil stock dropped 5 per cent in intra-day trade after the company reported an increase in net profit by 85 per cent for quarter ended March 31 on Thursday. The net profit soared to Rs 3,721 crore, as against Rs 2,006 crore for the corresponding quarter. The company’s revenue from operation soared to Rs 1,22,285 crores, as against Rs 98,719 crore a year ago.

The government, which holds 57.3% stake in IOC, is planning to divest about 3 per cent stake, as per media reports.

HPCL will declare its Q4FY17 results on Friday (May 26) and the BPCL board will meet to announce March quarter results on May 29, 2017.

At the end of the day, HPCL closed at Rs 567.45, up by 11.43 per cent while BPCL closed at Rs 750.25, up by 3.35 per cent and IOC closed at Rs 426.35, down by 2.82 per cent on BSE.