Hindustan Petroleum Corporation Limited (HPCL) on November 6 reported consolidated net profit of Rs 5,826.96 crore for second quarter of financial year 2023-24, unlike last year when the company posted losses due to record-high crude oil prices.
The state-run oil retailer posted loss of Rs 2,475.69 crore in the same period last year. HPCL’s Q2 net profit beats Bloomberg estimates of Rs 2990.30 crore. Healthier marketing margins from last year helped the company book profits in the quarter.
However, HPCL’s net profit declined 14 percent sequentially, as it posted profit of Rs 6,765.50 in the June quarter. Profit slipped in Q2 from last quarter as crude oil prices gained momentum since July amid supply cuts and geopolitical tensions. Brent crude oil averaged about $87 per barrel in the July-September quarter, a gain of 11 percent from the first quarter, brokerage Motilal Oswal said.
In Q2, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 15 percent from last quarter at Rs 9,280.36 crore, as against Rs 10,944.82 crore in Q1FY24.
Its revenue declined almost 10 percent to Rs 1.02 lakh crore, compared to Rs 1.13 lakh crore in the same period last year.
HPCL’s average gross refining margin (GRM) for the first half of FY24 was $10.49 per barrel, as against $12.62 during the corresponding period last year, the company said in a stock exchange filing.
The company’s throughput was 5.75 million metric tonne (MMT) during the quarter, compared to 4.49 MMT last year.
On the marketing front, HPCL achieved quarterly total sales volume (including exports) of 10.74 MMT during Jul-Sep 2023 from 10.39 MMT in last year, representing a growth of 3.4 percent, the company said in a press release.
HPCL commissioned 189 retail outlets across the country during the quarter taking the total number to 21,431 retail outlets.
HPCL shares closed at Rs 262.05 a piece on BSE, 1.75 percent higher than previous day’s close.
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