Hindustan Petroleum Corporation Ltd (HPCL) on Friday reported a 79 per cent jump in its March quarter net profit on the back of a recovery in fuel marketing margins and better refining margins.
Consolidated net profit was at Rs 3,608.32 crore in January-March compared with Rs 2,018.45 crore in the same period a year back, according to a company’s stock exchange filing.
The company however posted a loss of Rs 6,980.23 crore for the full fiscal year 2022-23 (April 2022 to March 2023) after it suffered huge losses in the first half on holding petrol, diesel and LPG prices despite a surge in cost.
It continues to hold prices but a fall in international oil prices has meant that it is making healthy margins now.
Petrol and diesel prices have been on a freeze since April 6 last year. The basket of crude oil that India imports was over USD 100 per barrel in April last year and is now around USD 75-76.
Crude oil is processed in refineries such as ones owned by HPCL at Mumbai and Vizag in Andhra Pradesh into fuel.
While the prices have fallen, the company, just like other state-owned firms – Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) – continues to hold rates to recoup losses suffered in the first half of the fiscal year.
Sales income was up 9 per cent at Rs 1.14 lakh crore in January-March.
For the full fiscal, the income came at Rs 4.64 lakh crore as compared to Rs 3.72 lakh crore in 2021-22.
The company earned USD 12.09 on turning every barrel of crude oil into fuel in 2022-23 as compared to a gross refining margin of USD 7.19 per barrel.
Fuel sales were marginally up at 10.92 million tonnes in January-March from 10.26 a year back while exports fell to 0.19 million tonnes as compared to 0.41 million tonnes in January-March 2022.
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First Published: May 12 2023 | 7:33 PM IST