HPCL's Q2FY19 result came below our expectation mainly driven by lower than expected sales volume, weaker GRM and higher forex losses. Revenue was up 42.1% YoY to Rs675bn while EBITDA/PAT was down 27%/37% YoY to Rs21.2/10.9 bn. Crude throughput grew by 2.6% YoY to 4.8mmt whereas sales volume remain flattish YoY to 8.8mmt. The company reported inventory gains of Rs12.8 bn and forex loss of Rs8.9 bn. We are revising our exchange rate assumption to Rs70/US$ for H2FY19E and FY20E, which led to a marginal change in estimates. We are keeping our TP unchanged at Rs248. However, due to 39% run-up since our last report (on 5th Oct'18), we downgrade...