Hindustan Petroleum Corporation Limited (HPCL), a key player in the oil marketing sector, recently shared its financial results for the first quarter of FY 2024-25, revealing an impressive 18% increase in standalone net profit. For the January-March period, HPCL reported a net profit of ₹3,355 crore, up from ₹2,843 crore during the same quarter last year. However, the company faced a slight dip in total income, which reached ₹1,19,126 crore, reflecting a 2.7% decline compared to ₹1,22,386 crore in the March quarter of FY24.
Key Financial Highlights
- Net Profit: ₹3,355 crore (Q4 FY25) vs. ₹2,843 crore (Q4 FY24)
- Total Income: ₹1,19,126 crore (Q4 FY25) vs. ₹1,22,386 crore (Q4 FY24)
- Crude Throughput: Increased from 5.84 million metric tonnes (MMT) to 6.74 MMT year-on-year
- Domestic Sales: Rose from 11.80 MMT to 12.11 MMT
- Export Sales: Increased from 0.53 MMT to 0.59 MMT
Market Dynamics and Challenges
Despite this robust profit growth, HPCL revealed a negative buffer of ₹10,894.53 crore due to discrepancies between the market-determined price of LPG cylinders and the effective cost to consumers. The Ministry of Petroleum and Natural Gas (MoPNG) has requested oil marketing companies to maintain this difference in a separate buffer account for future adjustments. HPCL noted that, without authorization from the Government of India, the receivables and revenue linked to this negative buffer have not been recognized.
Dividend Announcement
In conjunction with its financial performance, HPCL declared a dividend of ₹10.50 per share for FY25. The board has designated August 14, 2025, as the cutoff date for shareholders eligible to receive this dividend. Over the past year, HPCL has provided an equity dividend of ₹11.00 per share, resulting in a dividend yield of 2.77%.
Stock Market Reaction
Prior to the earnings announcement, HPCL’s shares ended the trading day at ₹396.90, a decrease of 3.3% on the Bombay Stock Exchange (BSE).
In summary, HPCL’s latest quarterly results reflect a solid profit growth trajectory, although challenges related to pricing and market adjustments persist. Investors will be keenly watching how the company navigates these complexities in the coming quarters.
