Hindustan Petroleum Corporation Limited (HPCL) released its consolidated financial report for the second quarter of the fiscal year 2023-24 on November 6, revealing a substantial net profit of Rs 5,826.96 crore. This marked a significant turnaround from the same period last year when the company faced losses due to record-high crude oil prices, posting a loss of Rs 2,475.69 crore.
HPCL’s Q2 net profit surpassed Bloomberg estimates of Rs 2,990.30 crore, reflecting the company’s strong performance despite challenging market conditions. The company attributed its profitable quarter to healthier marketing margins compared to the previous year.
However, despite the impressive annual comparison, HPCL experienced a 14 percent decline in net profit sequentially. In the preceding quarter (June quarter), the company had reported a profit of Rs 6,765.50 crore. The decline in profitability during Q2 was influenced by the upward momentum in crude oil prices since July, driven by supply cuts and geopolitical tensions. Brent crude oil prices averaged about $87 per barrel during the July-September quarter, marking an 11 percent increase from the first quarter, as noted by brokerage firm Motilal Oswal.
As of 1:32 pm, HPCL’s shares were trading 5.17 percent higher at ₹275.65, reflecting positive investor sentiment and confidence in the company’s financial performance.