Hindustan Petroleum Corporation (HPCL) shares witnessed a strong sell-off on Friday and ended lower by 7.2% at ₹375.60 on the BSE after the state-owned oil marketing company reported sharp decline in its profit for July-September quarter. The PSU saw its consolidated profit tumbling by 98% due to “suppressed marketing margins on select petroleum products, reduced refining margins due to lower cracks and falling international crude and product prices”.
For the quarter ended September 30, 2024, HPCL posted a consolidated net profit at ₹142.67 crore, down 97.5% from ₹5,826.9 crore in the corresponding quarter of the last fiscal year. Sequentially, the profit was down 77.5% from ₹633.94 in the June quarter of FY25.
However, revenue for the quarter climbed 5.4% to ₹1.08 lakh crore in Q2 FY25, from ₹1.03 lakh crore in the same period last fiscal. On quarter-on-quarter, the revenue was down nearly 15% from ₹1.21 lakh crore in Q1 FY25.
On the standalone basis, the profit stood at ₹631 crore versus ₹5,118 crore during Q2 FY24. The revenue increased to ₹1.08 lakh crore from ₹1.03 lakh crore in the year ago period.
During the quarter under review, average gross refining margins (GRMs) were $3.12 per barrel, sharply lower from $13.33 per barrel during Q2 FY24. The reduction in GRMs was in line with the trend of international benchmark product cracks, it says in the exchange filing.
During the period Apr-Sep 2024, HPCL refineries recorded highest ever crude thruput of 12.06 million metric tonnes (MMT) (operating at 103.7% of the installed capacity), up 8.2% against 11.15 MMT during Apr-Sep 2023, as per the release. “Widening the company’s crude basket, HPCL procured two new grades of crude (Jubilee and Pazflor) for the first time,” it says.
For the first half of the current fiscal, HPCL recorded sales volume of 24.25 MMT (including exports), up 7.3% from 22.59 MMT in H1 FY25. “On the domestic front, HPCL achieved sales volume growth of 5.6% during the September quarter as against PSU Industry growth of 1.8%. HPCL also recorded a market share gain of 0.78% amongst PSU oil companies during the quarter,” the release highlighted.
HPCL says in its earnings report that it invested ₹3,771 crore during Q2 FY25 to further strengthen its refining and marketing infrastructure, including investment in joint venture and subsidiary companies. This takes the total investment during Apr-Sep 2024 to ₹6,588 crore.
During Q2 FY25, HPCL commissioned 353 retail outlets across the country, taking the total number to 22,501. The company also commissioned 6 new LPG distributorships during the period, taking the total count to 6,364 units.
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