HPCL's Earnings Tumble Amid Falling Refinery Margins

Hindustan Petroleum Corporation Ltd (HPCL) reported a 97.8% drop in its net profit for the September quarter. This steep decline was due to reduced refinery margins, inventory losses, and falling international oil prices. A significant under-recovery on domestic LPG sales also contributed to the slump.

HPCL, a leading player in India's fuel market, faced a sharp 97.8% decline in its September quarter net profit, attributed to shrinking refinery margins and inventory losses amid falling international oil prices, according to recent filings.

The company's consolidated net profit plummeted to Rs 142.67 crore as compared to Rs 5,826.96 crore last year, suffering from squeezed marketing margins and under-recoveries in domestic LPG sales.

Refinery throughput increased slightly, yet earnings from fuel retailing continued to fall, exacerbating the firm's financial challenges as key metrics in the refining business faltered.

(With inputs from agencies.)