State-run Hindustan Petroleum Corporation Ltd (HPCL) posted an increase of 70 per cent in its net profit in the fourth quarter of the last financial year ended March 31, 2019, helped by substantial inventory gains and rupee appreciation negating a dip in refinery margins. Net profit in the period came in at Rs 2,970 crore against Rs 1,748 crore in the same period a year ago.
“Increase in profits is mainly attributable to increased sales, improved logistics, efficiency, inventory gains and rupee appreciation,” said HPCL chairman and managing director M K Surana. He added that the company has also achieved its highest ever sales of 38.7 million tonnes during 2018-19. In the fourth quarter, sales increased by 6.5 per cent to 10.3 million tonnes. “The sale of petrol increased 8.5 per cent, diesel by 3 per cent, LPG by 12.9 per cent, and ATF by 17 per cent,” he said. Besides, the oil firm also recorded an inventory gain of Rs 916 crore as the value of stock it held rose due to global price trends.
HPCL’s total income came in at Rs 73,672.50 crore against Rs 66,983.38 crore during the corresponding period of the previous year. Average gross refining margin for the fiscal came in at $5.01 per barrel against $7.40 per barrel last year, but refining margins fell due to low cracks in light and middle distillate products.
During 2018-19 full fiscal, however, net profit was lower at Rs 6,029 crore when compared with Rs 6,357 crore a year ago.