HPCL back in the black with Rs 1222 cr profit

BS 200 Scorecard

Hindustan Petroleum Corporation (HPCL) today reported a net profit of Rs 1,221.98 crore for the quarter ended September 30, against a net loss of Rs 22.14 crore for the corresponding period last year. The refiner also reported 44 per cent rise in net sales to Rs 24,367.46 crore compared with Rs 16,762.08 crore last year.

However, the figures for the quarter are not strictly comparable on a year-on-year basis as the profits have been booked on the basis of the oil bonds issued by the government earlier in the month. HPCL's share of the Rs 14,150 crore bond issue comes to Rs 2,906 crore.

This is what is reflected in the profits, said analysts. However, the company, which is slated to receive Rs 1,027 crore in the first tranche of the bond issue, has accounted for the whole of its share in this quarter, boosting up figures.

Last year the government had issued the bonds in the fourth quarter when the company had shown a profit of Rs 2,000 crore, they pointed out. Analysts said but for the bonds issue this quarter too, the company would have shown a net loss.

They also said the company's gross refining margin (GRM) of $2.06 a barrel was much lower than what was expected. A GRM of around $3 a barrel was expected, they added. The company had reported a GRM of $3.75 a barrel, after discount, for the same quarter for last year.

Analysts said one of the biggest reasons for the company's underperformance was the government imposed cap on the retail prices of petroleum products.

HPCL reported under-recoveries of Rs 120.73 crore for the first half of the year against the sale of petrol, diesel, LPG and kerosene. The figure stood at Rs 158.80 crore for the corresponding period last year.

The Mumbai-based refiner also got Rs 2,464.84 crore from Oil and Natural Gas Corporation, for sharing the losses.

The stock today gained 0.64 per cent to close at Rs 307.40 on the Bombay Stock Exchange against the previous close of Rs 305.45.