Hindustan Petroleum Corporation (HPCL) fell 1.1% to Rs 207.6 after standalone net profit dropped 99.1% to Rs 26.80 crore on 2.6% decline in net sales to Rs 65,868.51 crore in Q4 March 2020 over Q4 March 2019.
Q4 profit was impacted mainly because of inventory losses of Rs 1,002.93 crore due to drastic fall in oil prices accompanied with reduced movement in inventory (net impact Rs 750.51 crore). The company also suffered losses amounting to Rs 873.50 crore on account of foreign currency transactions and translations. Pre-tax loss stood at Rs 2434.26 in Q4 March 2020 as against pre-tax profit of Rs 4,673.10 crore in Q4 March 2019. The result was announced after market hours yesterday, 16 June 2020.
Average Gross Refining Margin (GRM) during the year ended 31 March 2020 stood at $1.02 per barrel, declining 80% from $5.01 per barrel reported in the same period last year. GRMs declined due to inventory losses and reduced cracks in diesel, LPG and FO.
HPCL accounted for budgetary support amounting to Rs 281.41 crore during April - March 2020 as against Rs 957.12 crore reported in April - March 2019 towards under recovery on sale of PDS SKO. The PSU OMC major recorded domestic sales volume of 9.25 Million Metric Tonne (MMT) in Q4 March 2020 as against 10.03 MMT in Q4 March 2019.
HPCL reported a consolidated net loss of Rs 27.63 crore in Q4 March 2020 as against net profit of Rs 3340 crore in Q4 March 2019. Net sales decline 2.6% to Rs 65,967.46 crore in Q4 March 2020 over Q4 March 2019.
Net profit dropped 56.3% to Rs 2637.26 crore on 2.3% fall in net sales to Rs 2,67,599.75 crore in fiscal year ending 2020 over fiscal year ending 2019. Meanwhile, the company has declared a final dividend of Rs 9.75 per equity share.
HPCL is engaged in the business of refining of crude oil and marketing of petroleum products. It operates through two segments: downstream, and exploration and production of hydrocarbons. ONGC holds 51.11% stake in HPCL as of 31 March 2020.
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