Hindustan Petroleum Corporation Ltd. announced a rise in standalone profits in the second quarter of fiscal 2025, but missed consensus analysts' estimates by almost 70%.
The oil marketing company reported a 77% uptick in standalone profits at Rs 631 crore in the July-September quarter, compared to Rs 356 crore in the previous quarter, according to an exchange filing. Analysts polled by Bloomberg had estimated a Rs 2,008 crore net profit.
The average gross refining margin for the quarter stood at $4.03 per barrel, compared to $10.49 per barrel during the corresponding previous period.
HPCL Q2 FY25 Highlights (Standalone, QoQ)
Revenue down 12% at Rs 99,925.91 crore (Bloomberg estimate: Rs 1,02,203 crore).
Ebitda up 29.3% to Rs 2724.41 crore (Bloomberg estimate: Rs 4,258 crore).
Margin at 2.7% versus 1.85% (Bloomberg estimate: 4.2%).
Net profit up 77% at Rs 631 crore (Bloomberg estimate: Rs 2,008 crore)
More Details
The downtick was driven by the downstream segment, where revenues fell over 10% quarter on quarter. The fall in revenues was on the back of the low petroleum product demand in the quarter, driven by the monsoon season. This weakness was also reflected in the company's domestic sales volumes that saw a similar fall to 10.97 million tonnes.
Despite the downtick of revenues, Hindustan Petroleum's Ebitda and margins both saw an uptick. Two major drivers for this was a 14% fall in stock-in-trade purchase and reversal of change in inventory levels worth Rs 4,276.56 crore
LPG Losses Expand
Due to the Ministry of Petroleum and Natural Gas notice to oil marketing companies to price LPG Cylinders lower to the market determined price, Hindustan Petroleum continued to see LPG losses.
As of September 2024, the company has a separate negative buffer account of Rs 4,500.84 crore for the same. The company's LPG losses in Q1FY25 stood at Rs 2,000 crore.
Physical Performance
Hindustan Petroleum's standalone crude throughput saw a 9.4% quarter on quarter uptick in Q2 FY25 to 6.3 million metric tonnes, while pipeline throughput saw a 4.4% downtick over the same period.
The company's domestic sales fell 10% sequentially to 10.79 million metric tonnes due to low demand, while exports on the other hand increased over 48% to 0.83 million metric tonnes.
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