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Informist, Thursday, Aug. 7, 2025

By Sunil Raghu

AHMEDABAD - Hindustan Petroleum Corp. Ltd.'s net profit for the June quarter rose a little over 12 times, or 1,128.4%, on year to INR 43.71 billion, buoyed by depressed global crude oil prices that pumped up operating margins. Its performance was below analysts' expectations, stunted by a rise in taxes. Analysts had expected the company's net profit to surge 13 times on year to INR 47.4 billion.

HPCL's income from sale of products for the June quarter was INR 1.20 trillion, down 0.65% on year. The company's revenue, excluding excise duty, was INR 1.10 trillion, down nearly 2.7% on year. This was better than the Street's expectation of a 13.1% fall to INR 989.1 billion. It is for the third quarter in a row that company saw a fall in its year-on-year sales.

The company's revenue declined despite an increase in refinery throughput and sales during the June quarter. HPCL's crude oil refinery throughput rose to 6.66 million tonnes from 5.76 million tonnes a year ago. The pipeline throughput fell to 6.70 million tonnes from 6.83 million tonnes a year ago. Its domestic sales during the quarter rose to 12.26 million tonnes from 12.07 million tonnes a year ago.

Total expenses of the company, including excise duty, fell 5.06% on year to INR 1.15 trillion during the quarter. Finance costs rose 2.55% to INR 7.49 billion. However, the cost of materials consumed rose nearly 4.56% on year to INR 365.43 billion and the cost of purchasing stock-in-trade fell 13.89% to INR 594.26 billion. The company's tax outgo jumped multifold to INR 14.55 billion in June quarter, up from INR 1.15 billion in June quarter of last year.

The gross refining margin fell to $3.08 per barrel, from $5.03 per barrel a year ago. This was way below what analysts had estimated it to be, in the range of $8.2 per barrel to $9.1 per barrel. The company's operating margin for the quarter was at 5.04% from 0.54% a year ago. 

The company said it has been able to deliver a 15.6% on-year jump in refinery throughput of 6.6 million tonnes in the June quarter, with Visakh refinery registering highest-ever quarterly crude throughput of 4.16 million tonnes, operating at 111% of its capacity. The refinery post expansion has capacity to process 15 million tonnes of crude oil. Similarly, Mumbai refinery processed almost 2.5 million tonnes of crude oil, at 106% of its capacity. The company said that four new crude grades, three of which were imported, were processed by its refineries in the June quarter. The company also registered a sales volume of 13.04 million tonnes for the June quarter, up 3.2% on year. Within this, its sales of motor fuels were 8.11 million tonnes, up 1.1% on year, and sales volume of liquefied petroleum gas 2.21 million tonnes, up 6.6% on year. The company's aviation business reported an on-year growth of 11.4% for the year at 291,000 tonnes in the June quarter. The company reported a pipeline throughput of 6.70 million tonnes for June quarter.

The company commissioned 154 retail outlets during the June quarter, taking its total number of outlets to 23,901. The company also added six liquefied petroleum gas distributors in the year, taking the total count to 6,384, the company said. It also added 875 km of pipeline to its city gas distribution network in the June quarter. It added 8,024 piped natural gas connections in the quarter, taking total to 124,484 connections. Its CNG outlets increased by 33 in June quarter to a total of 2,071. The company made first-ever supply of its lubricants to Indonesia, expanding its global footprint.

The company's capital expenditure in the June quarter was INR 28.6 billion. The company said it has already invested INR 592.9 billion of the committed INR 728.14 billion on its Barmer refinery and petrochemicals project. HPCL said it has achieved 88% overall progress and expects progressive commissioning of the project in the current year.

On Thursday, the company's shares closed at INR 402.40 on the National Stock Exchange, up 0.25%.  End

Edited by Akul Nishant Akhoury

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