HPCL Q1 net profit dips 53% to Rs 811 cr over decline in refining margin

The decrease in profit is due to sharp decline in crude prices in the month of May and June 2019 leading to inventory losses both at refinery and marketing

State-run Hindustan Petroleum Corporation (HPCL) posted a 53 per cent drop in net profit for the first quarter of the financial year 2019-20 to Rs 811 crore compared to Rs 1,719.2 crore during the April to June period a year ago owing to decline in refining margin and inventory losses.

However, gross sales for the first quarter saw an increase of 2.2 per cent to Rs 74,530 as compared to Rs 72,923 crore during the corresponding quarter of the previous year. The combined gross refining margin (GRM) during Q1FY20 came in at $0.75 a barrel as compared to $ 7.15