You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

HPCL slips after Q4 PAT tumbles 99% to Rs 26.8 cr

Topics
Business Finance

Capital Market 

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.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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: Wed, June 17 2020. 09:26 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU