HPCL slips after recording loss of Rs 2,172 crore in Q2 FY23

Hindustan Petroleum Corporation (HPCL) fell 1.42% to Rs 211.65 after the company reported a standalone net loss of Rs 2,172.14 crore in Q2 FY23 as against a net profit of Rs 1,923.51 crore in Q2 FY22.

Net sales (excluding Excise Duty) jumped by 30.5% to Rs 1,08,056.24 crore in the second quarter from Rs 82,774.69 crore posted in the corresponding quarter previous year.

Total expenses increased by 36.6% YoY to Rs 1,17.345.98 crore in Q2 FY23, due to higher raw material costs (up 2.6x YoY) and higher cost of purchases of stock-in-trade (up 9.2% YoY).

The company reported a pre-tax loss of Rs 2,893.22 crore in Q2 FY23 as compared to a profit before tax of Rs 2,361.24 crore reported in Q2 FY22.

Crude thruput in the second quarter was 4.49 MMT, up by 77.5% from 2.53 MMT in the same period last year. Pipeline thruput was 5.53 MMT (up 16.4% YoY) during the period under review.

While domestic sales rose by 12.3% to 9.87 MMT, exports improved by 67.7% to 0.52 MMT in Q2 FY23 over Q2 FY22.

HPCL reported a negative operating margin of 2.26% in Q2 FY23 as against a positive operating margin of 2.11% in Q2 FY22. Debt to equity ratio stood at 2.84 times as of 30 September 2022 as compared with 1.05 times as of 30 September 2021.

Average gross refining margin (GRM) for the period April-September 2022 was $ 12.62 per barrel as against $ 2.87 per barrel in April-September 2021. This was before factoring the impact of Special Additional Excise Duty and Road & Infrastructure Cess levied on export of select petroleum products, effective 01 July 2022.

During this period, due to the depressed marketing margins on motor fuels and LPG, the profitability is impacted, the company said.

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. As on 30 June 2022, ONGC held 54.90% in HPCL.

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