HPCL Q3 Results: Better marketing margins drove the state-owned OMC's operational revenue to ₹1.10 lakh crore in the third quarter of the current fiscal year.
As marketing margins surged, Hindustan Petroleum Corporation Ltd. (HPCL) posted a net profit for the December quarter that more than tripled on Thursday.According to the company's stock exchange statement, its consolidated net profit for the third quarter of the April 2024 to March 2025 fiscal year (FY25) was ₹2,543.65 crore in October-December 2024, as opposed to ₹712.84 crore during the same time the previous year.
Additionally, the profit increased from quarter to quarter in comparison to the ₹142.67 crore earned from July to September of 2024. One important measure of refiner profitability, HPCL's average gross refining margin, dropped to $6.01 per barrel for the reported quarter from $8.49 per barrel a year earlier.
From ₹981.02 crore a year ago and ₹1,285.96 crore the previous quarter, pre-tax earnings from the downstream petroleum retailing sector increased to ₹4,566.07 crore in the third quarter.
This is because, even while benchmark international oil prices declined throughout the reference period, HPCL and other state-owned fuel retailers, Indian Oil Corporation Ltd (IOC) and Bharat Petroleum Corporation Ltd (BPCL), kept retail selling prices of gasoline and diesel frozen.
Prior to last year's general elections, the three companies last dropped their gasoline and diesel prices by ₹2 per liter in mid-March 2024. At the time, the price of the basket of crude oil that India imports was about USD 85 per barrel. Average rates were below USD 74 in the October-December quarter.
This is because, even while benchmark international oil prices declined throughout the reference period, HPCL and other state-owned fuel retailers, Indian Oil Corporation Ltd (IOC) and Bharat Petroleum Corporation Ltd (BPCL), kept retail selling prices of gasoline and diesel frozen.
Prior to last year's general elections, the three companies last dropped their gasoline and diesel prices by ₹2 per liter in mid-March 2024. At the time, the price of the basket of crude oil that India imports was about USD 85 per barrel. Average rates were below USD 74 in the October-December quarter.
The oil corporations' need to recoup losses from rising crude oil prices—crude oil is refined to generate fuels like gasoline and diesel—has frequently been used as justification for rate freezes.
Operating income remained relatively stable at ₹1.18 lakh crore, as reported in the HPCL filing.
Even though the company recorded an under-recovery of almost ₹3,100 crore on the sale of home cooking gas LPG at a price set by the government, the profit was still made. The government is supposed to make up for this under-recovery by providing subsidized support, but as of this fiscal year, no such provision has been made.
HPCL's under-recovery on LPG for the first nine months of the current fiscal year was ₹7,598.93 crore.
Operating income remained relatively stable at ₹1.18 lakh crore, as reported in the HPCL filing.
Even though the company recorded an under-recovery of almost ₹3,100 crore on the sale of home cooking gas LPG at a price set by the government, the profit was still made. The government is supposed to make up for this under-recovery by providing subsidized support, but as of this fiscal year, no such provision has been made.
HPCL's under-recovery on LPG for the first nine months of the current fiscal year was ₹7,598.93 crore.
From October to December, the business handled 6.47 million tonnes of crude oil, up from 5.34 million tonnes the previous year. Compared to 11.36 million tonnes last year, it sold 12.32 million tons of fuel during the quarter.
From October to December 2024, the corporation made USD 6.01 for each barrel of crude oil converted to fuel, which is less than the USD 8.49 it made the previous year.
"The increase in profitability is attributable to robust physical performance and operational efficiencies in both refining and marketing divisions, coupled with improved margins," stated a statement from the business.
HPCL's highest-ever sales volume, including exports, was 37.12 MMT from April to December 2024, representing a 7.6% increase over 34.49 MMT from April to December 2023. In 3QFY25, the company also posted its highest-ever quarterly sales volume of 12.87 MMT (including exports), representing an 8.2% increase above 11.90 MMT.
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