HPCL Net Profit Soars 79% On Better Refining, Shares Rally

Hindustan Petroleum Corporation Ltd (HPCL) on Friday reported a 79% jump in its March quarter net profit on the back of a recovery in fuel marketing margins and better refining margins, according to a PTI report.

The stock of HPCL witnessed a surge of 0.93% on Friday. Last trading price of HPCL share is Rs 260.85 apiece. The stock's 52-week high price is Rs 267.05 apiece and 52-week low price is Rs 200.00 apiece, respectively. The company's market capitalisation is Rs 37,002.83 crore. The shares of HPCL gave 25% return in last 6-months, declined less than 1% in last 1-year, gave return of 37% in last 3-years.

Consolidated net profit declared at Rs 3,608.32 crore in January-March as against Rs 2,018.45 crore declared in the same period a year back, as per HPCL's stock exchange filing.

The company however posted a loss of Rs 6,980.23 crore for the full fiscal year 2022-23 (April 2022 to March 2023) after it suffered huge losses in the first half on holding petrol, diesel and LPG prices despite a surge in cost, added the PTI report.

It continues to hold prices but a fall in international oil prices has meant that it is making healthy margins now.

Petrol and diesel prices have been on a freeze since April 6 last year. The basket of crude oil that India imports was over USD 100 per barrel in April last year and is now around USD 75-76.

Crude oil is processed in refineries such as ones owned by HPCL at Mumbai and Vizag in Andhra Pradesh into fuel, added the PTI report.

While the prices have fallen, the company, just like other state-owned firms - Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) - continues to hold rates to recoup losses suffered in the first half of the fiscal year, stated PTI report.

Sales income was up 9 per cent at Rs 1.14 lakh crore in January-March.

For the full fiscal, the income came at Rs 4.64 lakh crore as compared to Rs 3.72 lakh crore in 2021-22.