In the final quarter of fiscal 2023-24, Hindustan Petroleum Corporation Limited (HPCL), a state-run oil marketing company, experienced a significant drop of nearly 25 percent in its consolidated net profit, which amounted to Rs 2,709.31 crore.

This decline can be attributed to several factors, including weakened refining margins due to elevated fuel costs and the challenge of not being able to fully transfer the increased fuel costs to consumers.

Comparatively, HPCL had recorded a profit of Rs 3,608.32 crore in the corresponding quarter of the previous fiscal year.

HPCL reported a decrease of 11.8 percent in its standalone net profit for the fourth quarter of fiscal year 2023-24, amounting to Rs 2,842.8 crore compared to Rs 3,222.62 crore in the previous year, according to a filing with the BSE on May 9.

The company’s consolidated total income for the quarter ending March 31, 2024, was Rs 1.22 lakh crore, marking a six percent decline from the Rs 1.15 lakh crore reported in the corresponding period of the previous year.

The board of directors of HPCL has proposed issuing one bonus share for every two shares held, pending approval from shareholders. The record date for this bonus issue is scheduled for June 21. Additionally, the board has recommended a dividend of Rs.16.50 per share on the face value of equity shares of Rs.10 each.

HPCL recorded an average gross refining margin (GRM) of $6.95 per barrel in the fourth quarter, a notable decrease from $14.01 per barrel earned in the same period the previous year. For the fiscal year ending March 31, 2024, the average GRM stood at $9.08 per barrel, compared to $12.09 per barrel in the preceding year.

HPCL attributed the decline in GRMs to the consistent trend observed in international product cracks.

On a standalone basis, HPCL’s total net income decreased by 0.9 percent to Rs 4.64 lakh crore, while the net profit reached Rs 14,694 crore, marking the highest ever, compared to a standalone net loss of Rs 8,974 crore in the preceding financial year.

For the fiscal year 2023-24, HPCL reported a consolidated Profit after Tax (PAT) of Rs 16,015 crore, in contrast to a net loss of Rs 6,980 crore in the previous financial year.

Regarding marketing achievements, HPCL recorded a total sales volume of 46.82 million metric tonnes (including exports) during FY 2023-24, indicating a growth of 7.8% compared to 43.45 MMT in the previous year. The company highlighted that this sales volume is the highest-ever achieved.

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