Hindustan Petroleum Corporation Ltd (HPCL) reported a sharp 97.8% drop in net profit for Q2 FY2024-25, with earnings plunging to ₹142.67 crore, down from ₹5,826.96 crore in the same period last year. The decline is attributed to reduced refining margins, inventory losses, and lower international crude and product prices, the company stated in its filing.
HPCL’s gross refining margin (GRM) dropped to $3.12 per barrel this quarter, significantly lower than the $13.33 per barrel recorded last year. Inventory losses of ₹1,400 crore due to a $5 per barrel dip in crude prices, alongside an under-recovery of ₹2,057 crore from LPG sales at government-regulated prices, impacted profitability.
Despite profit challenges, HPCL reported growth in fuel sales, with motor fuel sales rising by 4.5% to 6.8 million tonnes and LPG sales by 5.9% to 2.25 million tonnes. The aviation segment saw a substantial 19.6% growth, achieving sales of 250,000 tonnes. HPCL also expanded its crude portfolio, procuring new grades for the first time.
Pre-tax earnings from downstream fuel retailing declined to ₹1,285.96 crore from ₹6,984.60 crore in Q2 last year. Overall sales volume, including exports, rose by 8.2% to 11.62 million tonnes, marking a market share increase of 0.78% among PSU oil marketing firms.
