HPCL net profit down 86% to Rs 319 crore

Sales for the July-September period rise 8% to Rs 54,454

State-run Hindustan Petroleum Corporation Limited (HPCL) has posted 86.3 per cent drop in its second quarter net profit for the current financial year to Rs 318.9 crore, as compared to Rs 2,327.09 crore during the same period in 2012-13.

“The loss in net profit is mainly due to the net under-recovery loss of Rs 198 crore, after government and upstream contributions are factored in. There was also a forex loss of about Rs 150 crore. During the last year’s results, the first quarter subsidy was also factored in resulting in higher numbers,” said K V Rao, Director (Finance), HPCL.  Meanwhile, the company’s net sales for the period under review stood at Rs 54454 crore for the July-September period, against Rs 50,228 crore during the same period last year, posting an increase of 8 per cent.

During the quarter, the domestic sales of petroleum products increase 6.94 million tonnes registering a growth of 3.7 per cent above an industry average of 0.4 per cent. The combined gross refining margin (GRM) for for the July-September quarter stood at $3.81 per barrel, compared to $4.31 per barrel last year.

The company suffered an under-recovery loss of Rs 8,234 crore on sensitive petroleum products like petrol, diesel and kerosene, out of which government contribution stood at Rs 4,127 crore and upstream contribution was about Rs 3,909 crore. The under recovery for the first six months of the financial year was seen at Rs 14,060 crore.

Petrol sales increased for the period under review increase 7.2 per cent, while diesel sales were up 4.4 per cent — the highest growth rates among PSU fuel retailers. The Mumbai and Vizag refineries processed 3.89 million tonnes of crude during July-September, against 3.65 MTduring the same time last year.

Meanwhile, director (refineries) B K Namdeo said that Vizag refinery would come back to full capacity by February. “Now, we are working at 70 per cent capacity. It should be 85 per cent by December and would be 100 per cent by February,” her added.  The plant was partly shut due to a major fire in its cooling tower in August.