HPCL Profit Plunge: A Scrutiny of Falling Margins

HPCL reported a staggering 97.5% drop in net profit for the September quarter due to contracted refinery and marketing margins. The net profit fell sharply compared to the previous year and the previous quarter, as price freezes and reduced margins adversely impacted earnings.

State-owned Hindustan Petroleum Corporation Ltd (HPCL) reported a dramatic 97.5% decrease in net profit during the September quarter. The staggering drop is attributed to declining refinery and marketing margins, as indicated in the company's stock exchange filing.

The company's consolidated net profit plunged to Rs 142.67 crore in July-September, a significant fall from Rs 5,826.96 crore a year earlier. This downward trend was also visible sequentially, compared to Rs 633.94 crore earned in the April-June period.

HPCL and its state-run peers had previously benefitted from holding petrol and diesel prices, despite falling costs, to recover past losses. However, profits dipped following recent price cuts and shrunken margins amidst stable crude oil prices.

(With inputs from agencies.)