In contrast to the previous year, when the business reported losses as a result of record-high crude oil prices, Hindustan Petroleum Corporation Limited (HPCL) on November 6 declared consolidated net profit of Rs 5,826.96 crore for the second quarter of financial year 2023–24.

During the same period last year, the state-run oil merchant reported a loss of Rs 2,475.69 crore. The Q2 net profit of HPCL surpasses the Rs 2990.30 crore forecast by Bloomberg. The company was able to book profits for the quarter because to better marketing margins than the previous year.

HPCL reported a profit of Rs 6,765.50 for the June quarter, while its net profit fell 14% sequentially. Profit decreased in the second quarter compared to the previous one as supply constraints and geopolitical tensions have driven higher crude oil prices since July. According to brokerage Motilal Oswal, the average price of Brent crude oil during the July-September quarter was approximately $87 per barrel, an increase of 11% from the first quarter.

The results before interest, tax, depreciation, and amortisation (EBITDA) decreased by 15% in Q2 to Rs 9,280.36 crore from Rs 10,944.82 crore in Q1FY24, the previous quarter’s results.

Compared to the same period last year, when revenue was Rs 1.13 lakh crore, it saw an almost 10% fall to Rs 1.02 lakh crore.

According to a stock exchange report by the business, HPCL’s average gross refining margin (GRM) for the first half of FY24 was $10.49 per barrel, compared to $12.62 during the same period previous year.

During the quarter, the company’s throughput was 5.75 million metric tons (MMT), up from 4.49 MMT the previous year.

According to a press release from the firm, HPCL had a 3.4% increase in quarterly total sales volume (including exports) from 10.39 MMT to 10.74 MMT during July–September of 2023.

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