HPCL Q4 results: Profit rises 18% on stronger marketing, refining margins

Indian state-run refiner Hindustan Petroleum Corp (HPCL) reported a rise in fourth-quarter profit on Tuesday, aided by higher marketing margins.

Standalone net profit rose 18% to 33.55 billion rupees (about $398 million) in the quarter ended March 31.

HPCL's average gross refining margin - the profit from making refined products from one barrel of oil - rose to $8.44 per barrel for the reported quarter from $6.95 per barrel a year ago.

Key Context  India saw mixed demand for fuel in the January to March quarter, with overall demand falling in two of the three months and LPG demand rising for the most of the fourth quarter.

HPCL's marketing segment posted a 2.7% growth in domestic sales, surpassing the industry average of 2.4%, it said in a statement.

Last month, peer IOC reported a jump in quarterly profit on inventory gains, booked as a result of rising oil prices during the refining and shipping process.

Analysts said the cost of crude oil - used by refiners as raw material - fell in the quarter, helping rise in margins.