Mumbai: State-run oil marketing and refining firm, Hindustan Petroleum Corp Ltd’s (HPCL) September quarter earnings fell short of Street expectations. The company’s standalone net profit of ₹1,052 crore was lower than analysts’ estimates, as performance from the refining segment remained lacklustre. This comes at a time when the company posted refining inventory gains, contrary to the general expectation of an inventory loss for the quarter.
“HPCL’s reported and core gross refining margins (GRMs) stood at $2.83/ $2.55 per barrel, below our $5.5-6 expectation, but a trend similar to Indian Oil Corp. Ltd (IOCL),” Emkay Global Financial Services Ltd said in a report today.
GRM is the realization from turning a barrel of crude oil into finished products and is a key measure of profitability for refiners.
