India's HPCL posts quarterly profit above estimates on strong marketing margins

BENGALURU, Nov 6 (Reuters) - Indias Hindustan Petroleum Corp Ltd (HPCL) (HPCL.NS) on Monday reported a higher-than-expected quarterly profit, as a ballooning marketing margin helped offset rising crude oil prices.

The state-owned refiner reported a net profit of 51.18 billion rupees ($614.95 million) for the second quarter, compared with a loss of 21.72 billion rupees a year ago.

Analysts on average had expected a profit of 24.44 billion rupees, according to LSEG data.

Global crude oil prices rose about 30% in the September quarter as production cuts by Organization Of Petroleum Exporting Countries (OPEC) squeezed global crude supply .

Indian fuel retailers have not raised pump prices for months to insulate consumers from global crude price fluctuations.

HPCLs sale of products fell 10.5% to 1.02 trillion rupees, much like for peers Indian Oil Corp (IOC.NS) and Bharat Petroleum Corp (BPCL.NS).

HPCLs input costs rose nearly 3%. However, its overall expenses plunged 18% at 962.21 billion rupees.

The companys domestic sales volume rose 3% to 10.08 million metric tonnes (MMT), while its marketing arm registered 3.4% growth in quarterly sales to 10.74 MMT.

Average gross refining margin - the profit from making refined products from one barrel of oil - was $10.49 per barrel in the six months to September, compared with $12.62 per barrel a year ago.

Last month, other state-owned refiners Indian Oil and Bharat Petroleum also reported quarterly profits on higher marketing margins.

Shares of HPCL settled 1.8% higher ahead of the results, after plunging nearly 7% in the September quarter.

($1 = 83.2257 Indian rupees)