HPCL Q4 profit drops 25%, announces 1:2 bonus issue

Hindustan Petroleum Corporation Ltd (HPCL) revealed 25 per cent decline in its net profit for the March quarter, attributing the drop to lower refining margins. Additionally, the company announced a 1:2 bonus issue, providing shareholders with one free bonus share for every two shares held.

According to the company's stock exchange filing, HPCL's consolidated net profit stood at Rs 2,709.31 crore in the January-March quarter of the fiscal year 2023-24, a decrease from Rs 3,608.32 crore in the corresponding period of the previous financial year.

The firm's gross refining margin per barrel also witnessed notable decrease, falling to $6.95 in the quarter, compared to $14.01 per barrel a year ago and $8.50 per barrel in the preceding quarter. The reduction in refining margin, coupled with a Rs 2 per litre cut in petrol and diesel prices, contributed to the decline in net profit.

HPCL's downstream petroleum segment witnessed a 22 per cent decrease in pre-tax profit during the quarter, reflecting the challenging operating environment.

In a bid to reward shareholders, HPCL's board approved a 1:2 bonus issue, alongside recommending a final dividend of Rs 16.50 per equity share for the fiscal year 2023-24. Additionally, the company's robust operational performance was highlighted, with record-breaking achievements in crude throughput and sales volume.

For the full fiscal year 2023-24, HPCL reported a record net profit of Rs 16,014.61 crore, marking a significant turnaround from the previous year's loss. The company's investments in refining and marketing infrastructure, amounting to Rs 14,342 crore, underscored its commitment to strengthening operations and enhancing market presence.

Furthermore, HPCL expanded its retail outlet network, commissioning 428 petrol pumps in the January-March quarter, bringing the total number of outlets to over 22,000. Additionally, the company invested in electric vehicle charging facilities, further aligning with evolving market trends and sustainability initiatives.

(With PTI inputs)