HPCL's Q1 net dips 11% to Rs 2,003 cr, income up 66% to Rs 77,980 cr

During the quarter, HPCL sold 8.83 million tonnes of fuel overall against 7.62 million tonnes a year ago, representing a growth of 15.9%

Hindustan Petroleum Corporation (HPCL) has reported a net profit of Rs 2,003.90 crore for the first quarter of FY22. This is 11.04 per cent lower than the Rs 2,252.65 crore net profit reported by the company in the comparable quarter of financial year 2020-21.

Total income during the period under review stood at Rs 77,980.15 crores, up from Rs 46,702.09 crores in the same quarter of the previous financial year. During April-June 2021, HPCL achieved total sales volume of 8.83 million tonnes (MT) against 7.62 MT in previous year for the same period representing a growth of 15.9 per cent.

“During the quarter, the sales of major products have shown significant growth compared to same period last year despite an aggressive second wave of Covid-19 pandemic forcing partial lockdowns across the country. The sale of petrol was up 36.6 per cent, diesel 22.2 per cent and Aviation Turbine Fuel, 118.8 per cent,” a company statement said.

“HPCL also achieved its highest ever Q1 LPG Sales in this quarter,” the statement added.

The combined Gross Refinery Margin (GRM), gain per barrel of crude oil processed, of HPCL refineries for the quarter works out to $3.31 per barrel.

“Expect cracks and diesel demand should improve further closer to the end of the calendar year 2021-22,” said HPCL Chairman and Managing Director, M K Surana.

Commenting on global crude oil supplies, Surana said, “As on date, the crude oil prices have been moving between $70 and $78 a barrel in the recent past. That was a result of multiple factors both on supply and demand side.”

“There was bullishness on the demand side because there was quicker recovery, especially, in some parts of the world. There was also scare of some other variants of the virus, but there was a demand and pickups were reasonably good. There were some constraints on the supply side which took some time for the Oil Producing Exporting Countries (Opec) plus countries to reach to some conclusion. As on today we are expecting 400,000 barrels of additional crude oil supplies to come in the market,” he said.

“The normal expectation is for crude oil prices to remain in this range of $70-75 a barrel in the near future and at least till March or so. This is unless there is an aggressive third wave which may significantly affect demand,” he added.