HPCL Q2 Results: The company returns to green with a profit of Rs 5,827 crore thanks to a rise in marketing margin

7 Nov 2023 , 01:25 AM

The September quarter saw the state-owned Hindustan Petroleum Corporation Ltd (HPCL) return to profitability as a result of higher marketing margin and higher earnings. From July to September of 2023–2024, it recorded a combined net profit of Rs 5,826.96 crore.

The company reported a loss of Rs 2,475.69 crore in a stock exchange filing for the same time last year.

An increase in marketing margins helped offset losses from last year’s high rates, as a freeze on the revision of gasoline and diesel prices was implemented in spite of a decline in the price of input crude oil.

In the second quarter of the current fiscal year, pre-tax profits from the downstream oil refining and marketing sector was Rs 6,984.60 crore. There had been a loss of Rs 2,462.57 crore during that time last year.

Despite an increase in oil prices worldwide subsequent to Russia’s invasion of Ukraine, state-owned gasoline retailers HPCL, Indian Oil Corporation (IOC), and Bharat Petroleum Corporation Ltd (BPCL) froze prices last year. This was done in an effort to shield customers from price fluctuations.

The three businesses lost money in the first half of the 2022–2023 fiscal year (April 2022 to March 2023) as a result of the price freeze. HPCL lost Rs 15,118.41 crore between April and September of 2022. Nonetheless, from April to September of this year, it reported record earnings of Rs 16,389.55 crore.

Due to lower oil prices, revenues decreased from Rs 1.13 lakh crore in July through September of previous year to Rs 1.02 lakh crore.

In April-September 2023, HPCL reported that their gross refining margin was USD 10.49 per barrel of crude oil, compared to USD 12.62 during the same period the previous year.

Refinery throughput was 5.75 million tonnes in Q3 FY22–23 as opposed to 4.49 million tonnes in Q2 FY22–23. Domestic fuel sales increased from 9.87 million metric tons in Q2 of FY 23–24 to 10.08 million metric tons in Q2 of FY 24.

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