Hindustan Petroleum Corporation Limited (HPCL), a state-run oil marketing company, witnessed a significant 25 percent decline in its consolidated net profit, reaching Rs 2,709.31 crore for the March quarter of fiscal 2023-24. This decrease was attributed to weakened refining margins due to elevated fuel costs and challenges in passing on the rise in fuel expenses, which impacted overall profitability.
In comparison, HPCL had reported a profit of Rs 3,608.32 crore in the corresponding quarter of the previous fiscal year.
To address the situation, the HPCL board of directors has proposed the issuance of bonus equity shares at a ratio of one equity share of Rs 10 each for every two equity shares of Rs 10 each held, pending approval by the shareholders.
Additionally, HPCL’s standalone net profit saw an 11.8 percent year-on-year decline to Rs 2,842.8 crore in Q4FY24, down from Rs 3,222.62 crore reported in the same period last year, as disclosed in a filing to the BSE on May 9th.
