HPCL Q2 Results: Profit drops 88% YoY to Rs 631 crore

Hindustan Petroleum Corp’s (HPCL’s) profit declined 88% YoY to Rs 631 crore in the July-September quarter as refining margins crumbled. Shares of HPCL fell 8% on Friday when the benchmark Sensex closed 0.8% lower.

Revenues for the quarter rose 5% year-on-year to Rs 1,08,216 crore in the July-September quarter.

“The primary reasons for lower profit after tax are suppressed marketing margins on select petroleum products, reduced refining margins due to lower cracks and falling international crude and product prices,” HPCL said in a statement.


Average gross refining margin for the second quarter was $3.12 per barrel, a sharp decline from $13.33 per barrel in the year-earlier period. The reduction in GRMs is in line with the trend of international benchmark product cracks, the company said.

HPCL recorded domestic sales volume growth of 5.6% during the quarter as against an average growth of 1.8% for state-run oil companies.

The overall physical progress at the greenfield refinery project at Rajasthan’s Barmer has exceeded 82%, the company said. The crude oil pipelines, for both imported as well as for domestic crude oil to be used at Barmer refinery, have also achieved more than 94% completion, it said.

“As of 30th September 2024, the total commitments on the (Barmer) project are Rs 70,872 crore and capital expenditure is Rs 50,570 crore,” HPCL said.