HPCL posts modest 1.3% rise in pre-tax profit on lower refinery margins
Hindustan Petroleum Corporation (HPCL), a subsidiary of Oil and Natural Gas Corporation (ONGC), has posted a modest 1.3 per cent increase in profit before tax at Rs 16.1697 billion for the quarter ended September 30, 2019, compared to Rs 15.9622 billion during the same period last year. On the other hand, the company’s net profit saw a 3.6 per cent decline to Rs 10.5231 billion during the July to September quarter of the financial year versus Rs 10.9198 billion during the same period last year.
The company saw a combined gross refining margin (GRM) $2.83 a barrel during the quarter as compared to $4.81 a barrel in the corresponding previous quarter. During the quarter, the company had a foreign exchange (forex) loss of Rs 1.22 billion compared to Rs 8.87 billion during the same time in 2018-19. “Despite a volatile market, operationally we had a stable performance,” said M K Surana, chairman and managing director of HPCL. During the quarter, the company had an inventory gain of Rs 530 million, compared to Rs 12.76 billion during the second quarter last year. “After adjusting the inventory gain, we had more or less the same GRM during the quarter under review,” he added.
The company’s gross sales during the quarter was Rs 661.65 billion during July to September as compared to Rs 730.65 billion during the same period in 2018. During the second quarter, the domestic sales of petroleum products have increased to 8.95 million tonne (MT) registering a growth of 1.3 per cent over the corresponding quarter of previous year. The sales of petrol increased by 6.3 per cent, LPG by 11.2 per cent and that of bitumen by 8.1 per cent over the corresponding period of previous financial year.
Surana said the company’s refineries are being upgraded to produce transportation fuels meeting BS VI specifications and HPCL will be ready to roll out BS VI fuel on pan India basis as per the scheduled date. On the other hand, the company has already rolled out BS VI fuel in the National Capital Region (NCR) and some districts outside the region too. At present, the higher grade of fuel is available in four districts of Rajasthan, eight in Uttar Pradesh and seven in Haryana.
(Source: Business standard 08-11-19)