Hindustan Petroleum Corp. Ltd, after reporting a 20% increase in quarterly net profit on Wednesday, has revealed it is buying more Russian crude in order to combat soaring global energy prices emanating from the conflict between Iran and the United States.
During a post-earnings conference call, HPCL's managing director and chairman, Vikas Kaushal stated the company is significantly increasing its intake of Russian crude to insulate its margins.
Executives noted that the company has secured crude supplies for the next two months and is increasingly relying on spot cargoes, with purchases already underway for July.
This is an important pivot for one of India's three major state-run oil marketing companies, which have been absorbing high input costs to maintain domestic price stability. But management suggested the current trajectory of the Iran-U.S. war is making that burden unsustainable.
HPCL's admission also comes on the back of PM Modi's call for citizens to reduce fuel consumption, with multiple government officials warning that the domestic energy situation is critical and would require increased reduction in fuel consumption.
For the fourth quarter ending March 31, HPCL's net profit rose to Rs 4,902 crore, up from Rs 4,703 crore in the previous quarter.
Earnings before interest, taxes, depreciation and amortization saw a robust 27.9% climb to Rs 8,979 crore. Revenue remained largely stagnant at Rs1.14 lakh crore, reflecting the volatile pricing environment. The company also declared a final dividend of Rs 19.25 per share for the financial year.
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