HPCL Q3 Results: Net profit jumps five-folds to ₹3,023 crore on improved margins, revenue hits ₹1.10 lakh crore
- HPCL Q3 Results: The state-owned OMC's revenue from operations in the third quarter of current fiscal rose to ₹1.10 lakh crore led by better marketing margins.
HPCL Q3 Results: Hindustan Petroleum Corporation Ltd (HPCL) announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Thursday, January 23, reporting a massive five-fold jump of 471 per cent in its standalone net profit to ₹3,023 crore, compared to ₹529.02 crore in the corresponding period last year.
The state-owned oil marketing company (OMC)'s profit was aided by operational efficiencies in refining and marketing divisions with improved margins. HPCL's revenue from operations in the third quarter of current fiscal rose to ₹1.10 lakh crore driven by robust demand across core business segments, even as the OMC navigated challenges over fluctuating global crude prices.
Also Read: OMCs poised for strong H2FY25 earnings; IOC, HPCL, BPCL shares remain attractive: Analyst
HPCL Q3 Results: Key Metrics
HPCL's average gross refining margin, a key profitability indicator for refiners, fell to $6.01 per barrel for the reported quarter from $8.49 per barrel a year earlier. The pre-tax earnings from downstream fuel retailing business jumped to ₹4,566.07 crore in the third quarter from ₹981.02 crore a year back and ₹1,285.96 crore in the preceding quarter.
This is because HPCL and other state-owned fuel retailers - Indian Oil Corporation Ltd (IOC) and Bharat Petroleum Corporation Ltd (BPCL) - continued to keep retail selling prices of petrol and diesel on freeze despite a fall in benchmark international oil prices during the reference period.
The three OMCs had last revised petrol and diesel prices in mid-March 2024 when they reduced rates by ₹2 per litre ahead of the general elections last year. The basket of crude oil that India imports hoovered around $85 per barrel at that time. Rates averaged less than $74 in the October-December quarter.
The rate freeze has often been justified on grounds that the oil companies need to recover losses they make when prices of crude oil, which is refined to make fuels like petrol and diesel, rise. HPCL's income from operations was almost unchanged at ₹1.18 lakh crore in the December quarter of FY25.
The net profit was despite the OMC booking an under-recovery of about ₹3,100 crore on sale of domestic cooking gas LPG at government controlled price. This under-recovery is to be made by the government in the form of subsidy support but so far no provision has been made during the current fiscal year.
For the first nine months of the current fiscal, HPCL had an under-recovery of ₹7,598.93 crore on LPG. HPCL processed 6.47 million tonnes of crude oil in October-December, up from 5.34 million tonnes a year back. It sold 12.32 million tonnes of fuel in the quarter, up from 11.36 million tonnes last year.
HPCL earned $6.01 on turning every barrel of crude oil into fuel during October-December 2024, down from $8.49 a year back. HPCL also recorded the highest ever quarterly sales volume of 12.87 MMT (including exports) during 3QFY25 registering a growth of 8.2 per cent compared to 11.90 MMT.
During the April-December period of 2024, HPCL recorded the highest ever sales volume of 37.12 MMT (including exports) registering a growth of 7.6 per cent compared to 34.49 MMT during April-December 2023. During 3QFY25, HPCL recorded highest ever pipeline output of 6.93 MMT (growth of 3.3 per cent over 3QFY24). On the domestic front, HPCL achieved sales volume growth of 8.2 per cent during the quarter, as against the industry growth of 6.3 per cent.
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