Hindustan Petroleum’s Q2 profit increases six-fold, announces ₹5 dividend

State-owned refiner Hindustan Petroleum (HPCL)’s profit after tax in the second quarter rose six-fold or about 507% on a year-over-year basis to ₹3,830 crore aided by better refining margins and a lower base effect. Gross refining margins, which is among the major indicators of profitability, more than doubled to $8.80 for every barrel in the second quarter from the corresponding period last year.

Further, Hindustan Petroleum’s revenue from operations also increased about 1% during the same period to more than ₹1.10 lakh crore. Its second quarter performance largely mirrored that of its peer Indian Oil which registered a more than forty-times increase in profits fuelled by better refining margins and lower base. The reduced refining margins account for lower cracks during the corresponding period last year alongside falling international crude oil prices. HPCL’s profit in the corresponding period last year stood at ₹631 crore.

In the September-end quarter this year, the refiner’s crude throughput accelerated 4.3% to 6.57 MMT from the corresponding period last year. Overall sales during the period rose 3.9% YoY to 12.07 MMT aided by 3.6% growth in domestic sales.

Other than the quarterly results, HPCL announced an interim dividend of ₹5 for each equity share. It would be payable to eligible shareholders by November 27.

Scrips of Hindustan Petroleum closed 3.5% higher at ₹468.35 apiece on the BSE and 4.15% higher at ₹470.90 apiece on the NSE.