Shares of Hindustan Petroleum Corporation (HPCL) fell nearly 4% on November 4 after the state-owned oil retailer reported a standalone net loss of Rs 2,172 crore for the quarter ended September 2022, compared with a loss of Rs 10,197 crore in the June quarter.

The company posted a profit of Rs 1,923 crore in the last fiscal. The stock was quoted at Rs 202.75 on the National Stock Exchange at 10.30 am, down 3.89%. It posted its biggest drop in over a month, trading near a 52-week low of Rs 200.05.

For the quarter, the company’s revenue fell 5.3% quarter-on-quarter to Rs 1.08 lakh crore from Rs 1.14 lakh crore in the June quarter. However, revenue was up 30% year over year.

Analysts pointed out that the losses were limited by a one-time compensation from the Indian government. The company said the government recently approved a one-off grant of Rs 5,617 crore to compensate for sales of domestic LPG in FY 2021-22 and the current period (officially confirmed between July 2022 and September 2022) Insufficient recycling.

The average gross refining margin (GRM) for the April-September 2022 period was $12.62 per barrel, compared to $2.87 per barrel a year earlier.

Foreign brokerage CLSA has an “outperform” rating on the stock but has cut its target price to Rs 235 a share from Rs 270. “Net loss in H1 was 32% of book value due to huge marketing losses. We assume a bigger net loss in FY23,” CLSA said. However, a resurgence in auto fuel prices could be a positive trigger.