HPCL’s profit doubles to ₹2,253 crore in Q1
1 min read . Updated: 07 Aug 2020, 07:38 AM ISTAs per HPCL’s regulatory filing, profit surged despite gross sales falling to ₹45,945.48 crore in the quarter from ₹74,595.64 crore in April-June 2019
MUMBAI : State-run oil refiner and marketer Hindustan Petroleum Corp. Ltd (HPCL) posted a more than twofold rise in consolidated net profit in the June quarter to ₹2,252.65 crore from a net profit of ₹877.48 crore in the year-ago period.
As per HPCL’s regulatory filing, profit surged despite gross sales falling to ₹45,945.48 crore in the quarter from ₹74,595.64 crore in April-June 2019.
“We ran our refineries over 100% capacity. So, instead of storing crude, we stored the products, which has helped us post a positive gross refining margin. Also, we could cater to the market faster and better as we stored the products across our locations," said M.K. Surana, chairman and managing director, HPCL.
The company earned $0.04 for turning every barrel of crude into fuel, compared to a gross refining margin of $0.75 per barrel in the year-ago.
“The covid-19 pandemic is globally inflicting high economic and human costs, causing a slowdown of economic activity. Specific to the corporation, it did have an impact on sales in April and May 2020, though a substantial recovery was seen in June," HPCL said.
In July, demand for petrol was 89% of what it was in the year-ago, while diesel demand was at 83%, Surana said.
July usually sees a dip in fuel consumption, especially petrol. The onset of the monsoon and muted agricultural activity also impacts the demand for diesel. This time, demand also suffered because of the lockdown in major consuming cities such as Bangalore and Pune.
“I, however, do not see any structural shift. For demand to pick up, industrial activity needs to resume," Surana said, adding that the festive season could lead to recovery.
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