Hindustan Oil Exploration Shares Tanked Over 15% Despite Q1 Profit Up 104.23% YoY

Hindustan Oil Exploration Company's share price on Wednesday tumbled in early trade on the BSE, falls near 19%. It is believed that the weak June quarter performance in addition to a higher windfall tax on petroleum products was the reason for the performance of the shares.

The company's standalone net profit fell 37.6% YoY to Rs 21.34 crore during the April to June quarter (Q1) of the fiscal year 2023-24, compared to Rs 34.21 crore reported in the same period last year. Additionally, sequentially, the profit decreased by 80% from the Rs 106.97 crore reported in the March quarter of FY23.

On the consolidated basis, the company's net profit increased 104.23% YoY to Rs 66.07 Crore in the quarter ended in June, however, it declined 38% on QoQ, according to a filing with the exchange.

Meanwhile, the stock is currently trading at Rs 201 per share on BSE, down 15.37% from its previous close. at the time of writing, 02:08 PM, the shares hit an intraday high of Rs 210.20 and an intraday low of Rs 191.30. The stock has fallen 19.57% in the past 1 week. It jumped 24.26% in 1 year, and 159.59% in 3 years, respectively. It has fallen 36.82% in 5 years.

The firm has announced that Ramasamy Jeevanandam will be appointed as managing director of the company with effect from October 1 after Pandarinathan Elango's retirement on September 30. The same is subject to approval of the shareholders of the company.

As per regulatory filing by the Board Company, changes in Directorship/Key Managerial Personnel are as follows:

a. Mr. Pandarinathan Elango (DIN: 06475821), Managing Director of the company, shall be retiring from his position of Managing Director with effect from the closure of the business hours on September 30, 2023, on completion of his current term.
b. Mr. Ramasamy Jeevanandam (DIN: 07046442) is appointed as the Managing Director of the Company with effect from October 01, 2023, subject to the approval of the shareholders of the Company.
c. Mr. Vivek Rae (DIN: 01866765), is reappointed as the Independent Director of the company for the second term effective from April 18, 2024, subject to the approval of the shareholders of the Company.

Hindustan Oil Exploration Company Limited (HOEC) has engaged in Production Sharing Contracts (PSC) with the Government of India (GOI) and other parties. In India, both onshore and offshore, the company is now involved in the exploration, development, and production of hydrocarbons, including crude oil and natural gas. In addition to these, the company offers other oil field services as well as geological and geophysical services related to the exploration of oil and natural gas.