HPCL records 56% drop in profit for FY20
1 min read . Updated: 16 Jun 2020, 08:53 PM ISTThe decrease in net profit is mainly on account of inventory losses due to sharp fall in crude prices and exchange rate fluctuations
MUMBAI : State-run Hindustan Petroleum Corporation Limited (HPCL) has recorded 56% drop in its net profit at ₹2,637 crore for the year ended 2019-20 against ₹6,029 crore for the previous year.
The decrease in net profit is mainly on account of inventory losses due to sharp fall in crude prices and exchange rate fluctuations, the company said today.
January-March quarterly profit however, was down 99% at ₹27 crore against ₹2,970 crore during the corresponding period of previous financial year.
Gross sales for the FY 19-20 came in at ₹2,86,250 crore as compared Rs.2,95,713 crore for the previous year.
"Financial Year 2019-20 specially in last quarter has seen unprecedented event like outbreak of covid-19 pandemic leading to nationwide lock downs and demand contraction on the back of generally sluggish global economic activities. This coupled with inability of oil producing countries to reach a consensus to re-balance the supply demand situation lead to unprecedented volatility in crude oil and product prices and also in exchange rates," said HPCL in a press statement.
The company added that the nationwide lock down to contain the spread of the pandemic in India lead to significant demand contraction in the last part of March 2020 necessitating regulated refinery operations.
HPCL achieved combined gross refining margin of $1.02 per barrel during the year as compared to $5.01 per barrel during 2018-19. GRMs were lower in comparison to previous year mainly due to inventory losses and reduced cracks in diesel, and liquefied petroleum gas.
During 2019-20, HPCL achieved the highest ever sales volume of 39.6 million metric tonnes (MMT) compared to previous year’s sales of 38.7 MMT. Domestic sales of Motor Spirit (Petrol) increased by 4.7% compared to financial year 2018-19 while LPG sales grew by 7.3%, the company said.
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