HOEC in the green

Hindustan Oil Exploration Company (HOEC) went up briefly to an intra day high point at Rs.88, which was just Rs.1.30 short of its 52-week high of Rs.89.30. It has come off from the Rs.88 levels but remains in the green currently at Rs.85 levels.

The company declared its Q4FY17 performance yesterday after market hours and the market thinks it was a good show.

HOEC’s net revenue for the quarter rose by a meagre 33% (YoY) at Rs.8 crore but net profit came in at Rs.10 crore , which is higher than the topline. And it is a turnaround vis-à-vis previous Q4 where it had a net loss of Rs.2 crore.

This feat of jump up in net profit was thanks to the exceptional income of Rs.6 crore. This apart it also managed to bring down costs by 38% mainly by halving employee costs, no interest outgo.

The company ended FY17 with a consolidated revenue of Rs.26 crore, down 50% but net profit rose over 7 times to Rs.36 crore and this was on account of the Rs.29 crore exceptional income.