Hindustan Petroleum Corporation Limited (HPCL) on October 25 reported consolidated net profit of Rs 143 crore for second quarter of financial year 2024-25, a decline of 97.5 percent from last year, hurt by lower refining margins and inventory losses.
The state-run oil retailer posted profit of Rs 5,827 crore in the same period a year ago. Meanwhile, the company’s net profit declined 77.4 percent sequentially, as it posted profit of Rs 634 crore in the June quarter.
The primary reasons for lower PAT are suppressed marketing margins on select petroleum products, reduced refining margins due to lower cracks and falling international crude and product prices, said HPCL in a press release.
The company’s total income remained flat at Rs 1.08 lakh crore in the quarter as compared to Rs 1.03 lakh crore last year.
At 2:27 pm, HPCL shares were trading at Rs 376.45 a piece on BSE, 6.99 percent lower than previous day’s close.
Its average gross refining margin (GRMs) for the quarter fell to $3.12 per barrel from $13.33 per barrel a year earlier. The company said the reduction in GRMs was in line with the trend of international benchmark product cracks.
The company’s throughput was 6.30 million metric tonne (MMT) during the quarter, compared to 5.75 MMT last year.
On the marketing front, HPCL achieved quarterly domestic sales of 10.79 MMT during July-Sept 2024 from 10.08 MMT in last year. Exports in the quarter came in at 0.83 MMT.
HPCL invested Rs 3,771 crore during the quarter to further strengthen its refining and
marketing infrastructure, including investment in joint venture and subsidiary companies, it said. The total investment during Apr-Sep 2024 was Rs 6,588 crore.
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