Hindustan Petroleum Corporation Ltd (HPCL) reported a threefold increase in consolidated net profit for Q3 FY2024-25, reaching Rs. 2,543.65 crore compared to Rs. 712.84 crore in Q3 FY2023-24. On a quarter-on-quarter basis, the profit surged from Rs. 142.67 crore in the July-September 2024 quarter.
Pre-tax earnings from downstream fuel retailing rose sharply to Rs. 4,566.07 crore, up from Rs. 981.02 crore a year ago and Rs. 1,285.96 crore in the previous quarter. This growth was attributed to stable retail prices of petrol and diesel, maintained since mid-March 2024, despite a drop in international crude oil prices to below USD 74 per barrel during the quarter.
The company faced an under-recovery of Rs. 3,100 crore on domestic LPG sales during Q3 FY25, adding to a nine-month total of Rs. 7,598.93 crore. These losses are expected to be offset by government subsidies, though no provisions have been made yet.
HPCL processed 6.47 million tonnes of crude oil in Q3 FY25, up from 5.34 million tonnes a year earlier, and sold 12.32 million tonnes of fuel, compared to 11.36 million tonnes in the same period last year. The company’s gross refining margin (GRM) stood at USD 6.01 per barrel, down from USD 8.49 per barrel in Q3 FY2023-24.
While HPCL’s quarterly profit soared, its nine-month net profit dropped 75% to Rs. 3,320.26 crore, reflecting challenges in balancing profitability with government pricing mandates.