Hindustan Petroleum Corporation Limited (HPCL) on July 29 reported consolidated net profit of Rs 633.94 crore for first quarter of financial year 2024-25, a decline of 90.6 percent from the year-ago period.
The state-run oil retailer posted profit of Rs 6,765.50 crore in the same period last year. The decline in profit was primarily due to weak gross refining margins (GRM) and higher crude oil prices from last year.
Meanwhile, the company’s net profit declined 76 percent sequentially, as it posted profit of Rs 2,709.31 crore in the March quarter. HPCL said the primary reasons for lower PAT are suppressed marketing margins on select petroleum products and reduced refining margins.
The company’s total income remained flat at Rs 1.21 lakh crore, compared Rs 1.19 lakh crore last year.
HPCL’s average gross refining margin (GRM) for Q1 was $5.03 per barrel, as against $7.44 during the corresponding period last year. The reduction in GRMs is primarily due to lower cracks in line with the trend of international product cracks, the company said in a press release.
The company’s throughput was 5.76 million metric tonne (MMT) during the quarter, compared to 5.40 MMT last year.
On the marketing front, HPCL achieved quarterly domestic sales of 12.07 MMT during Apr-Jun 2024 from 11.43 MMT in last year. Exports in the quarter came in at 0.56 MMT.
HPCL invested Rs 2,017 crore during the quarter to further strengthen its refining and marketing infrastructure, including its equity investment in joint venture and subsidiary companies.
During the quarter, HPCL commissioned 126 retail outlets across the country taking the total number of outlets to 22,148. The company also commissioned nine new LPG distributorships during the period taking the total count of LPG distributorships to 6,358.
HPCL shares closed at Rs 381.20 apiece on BSE, 1.26 percent higher than previous day’s close.
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