You are here: Home » Companies » News
Business Standard

HPCL sees two-fold jump in net profit in Q2, okays Rs 2,500-cr buyback

This included a $2.33 per barrel inventory gain from buying cheaper crude oil earlier and processing in Q2.

Topics
HPCL net profit | Share buybacks

Agencies  |  New Delhi 

petrol, oil, OMC, ONGC, BPCL, HPCL, Indian Oil

Hindustan Petroleum Corp (HPCL) on Wednesday reported a twofold jump in its second quarter (July-September 2020, or Q2) net profit on the back of a surge in refining margins and inventory gains, and announced a Rs 2,500-crore share buyback plan as the management said it felt the share price was lower than the value it deserves.

Net profit was Rs 2,477 crore compared to Rs 1,052 crore a year back, HPCL Chairman and Managing Director Mukesh Kumar Surana told reporters on a call. "The significant improvement in the profitability in spite of challenges including lockdown due to Covid-19 pandemic was a result of strategic planning in refinery and marketing operation, containing the contraction to less than the industry, efficient inventory management and effective production placement," he said. Gross sales revenue at Rs 61,340 crore was lower than Rs 66,165 crore of Q2 of the previous financial year due to lower oil prices.

The firm earned $5.11 on turning every barrel of crude oil into fuel in the second quarter of 2020-21 fiscal year as compared to a gross refining margin of $2.83 a barrel.

This included a $2.33 per barrel inventory gain from buying cheaper crude oil earlier and processing in Q2. This translated into Rs 1,780 crore of gain. Besides, the firm also had a forex gain of Rs 524 crore, he said.

In a stock exchange filing, the firm said it will buy back up to 100 million shares for no more than Rs 250 apiece.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, November 05 2020. 00:04 IST
RECOMMENDED FOR YOU
.