Hindustan Petroleum Corporation Ltd (HPCL) reported a net profit of ₹2,477.45 crore during the July to September quarter from ₹2,813.83 crore in the April-June quarter.
The refiner owned by ONGC Ltd reported operating revenue of ₹61,340.30 crore during the second quarter from ₹45,884.91 crore in the first quarter.
The net profit was ₹1,052.31 crore during the second quarter of FY20 while the operational revenue was ₹66,164.62 crore.
The second-quarter net profit was boosted by an inventory gain of ₹1,780 crore.
Board’s nod for buyback
HPCL said its Board has approved a buyback of up to 10 crore equity shares or 6.56 per cent of the total paid-up equity share capital of the company at ₹250 per share, translating into an outgo of ₹2,500 crore. It will be done through market transactions to create value to shareholders, including minority shareholders.
HPCL processed 4.06 million tonnes (MT) of crude during the second quarter from 3.97 MT during the first quarter. In the second quarter of FY20, the company processed 4.56 MT.
HPCL sold 8.10 MT of petroleum products locally during the second quarter from 7.24 MT during the first quarter. In comparison, it sold 8.95 MT in the second quarter of FY20.
The average gross refining margin during the second quarter was $5.11 a barrel.
M K Surana, chairman and managing director of HPCL told media on Wednesday that the merger with MRPL will be carried out in the next financial year as part of the consolidation of downstream units within ONGC.