Net profit in January-March came at Rs 2,970 crore against Rs 1,748 crore in the same period a year back.
Hindustan Petroleum Corp Ltd (HPCL) on May 20 reported a 70 percent jump in its fourth-quarter net profit as inventory gains and rupee appreciation negated a dip in refinery margins. Net profit in January-March came at Rs 2,970 crore against Rs 1,748 crore in the same period a year back, HPCL Chairman and Managing Director MK Surana told reporters here.
"Increase in profits is mainly attributable to increased sales, improved logistics, efficiency, inventory gains and rupee appreciation during Q4 of the financial year ending March 31, 2019," he said.
HPCL had an inventory gain of Rs 916 crore as the value of stock it held rose due to international price movement. The firm had an inventory gain in the fourth quarter of the previous year, he said.
Besides the company had a currency exchange gain of Rs 248 crore as opposed to a forex loss of Rs 84 crore a year back, he added.
The company earned $4.51 crore on turning every barrel of crude oil into fuel as compared to gross refinery margin of $7.07 per barrel.
Surana said HPCL sales rose 6.5 percent to 10.03 million tonnes.
"The sales of petrol increased 8.5 per cent, diesel by 3 per cent, LPG by 12.9 percent, ATF by 17 percent," he said.
Turnover rose to Rs 72,840 crore in January-March from Rs 66,351 crore a year back.
During FY18-19 full fiscal, net profit was lower at Rs 6,029 crore when compared with Rs 6,357 crore.
GRM of $5.01 per barrel in the fiscal compares with $7.40 in the previous financial year. The lower refinery margins were due to "increased crude price and exchange rate variation loss due to rupee depreciation," he said.
While inventory gains rose to Rs 1,366 crore from Rs 851 crore FY17-18, the company suffered a currency exchange loss of Rs 579 crore as compared to a gain of Rs 322 crore a year back, he added.
He said the company's borrowings went up by over Rs 7,000 crore to Rs 27,240 crore as about Rs 8,000 crore of fuel subsidy bill remained unpaid by the government.
During 2018-19, HPCL achieved the highest ever sales of 38.7 million tonnes.The company declared a final dividend of Rs 9.40 per share for FY18-19.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.