Hindustan Petroleum Reports 34 Percent Rise in Third Quarter Profit as Refining Margins Expand
HPCL reported a 34.7 percent increase in third quarter profit to 40.72 billion rupees. Gains were driven by improved margins and lower global crude oil prices.
Insights:
Hindustan Petroleum Corporation Limited reported a 34.7 percent year-over-year increase in its standalone net profit for the third quarter ended December 31. The Mumbai-based state-run refiner recorded a net profit of 40.72 billion rupees, a figure calculated against an exchange rate of 91.6150 rupees per dollar. This performance comes as India 
IN, the world's third-largest consumer and importer of oil, continues to see high domestic demand. While industry peers such as Bharat Petroleum Corporation Limited , Indian Oil Corporation Limited , and Reliance Industries Limited operate within the same macroeconomic climate, these results emphasize the specific gains for the state-run entity during the period.
IN, the world's third-largest consumer and importer of oil, continues to see high domestic demand. While industry peers such as Bharat Petroleum Corporation Limited , Indian Oil Corporation Limited , and Reliance Industries Limited operate within the same macroeconomic climate, these results emphasize the specific gains for the state-run entity during the period.A primary driver for the profit surge was the expansion of the gross refining margin, which is defined as the profit from making refined products from one barrel of oil. The company saw its margin improve to $8.85 per barrel in the third quarter, compared to $6.01 per barrel in the same period of the prior year. This margin expansion was supported by a significant decline in raw material costs, as global Brent Crude Oil prices dropped more than 9 percent during the October-December quarter.
