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HPCL Q1 net profit zooms 157% to `2,252.65 crore

New Delhi: Hindustan Petroleum Corp Ltd (HPCL) on Thursday reported a 157 per cent jump in its June quarter net profit on the back of inventory gains and better than industry performance.

Consolidated profit of Rs 2,252.65 crore, or Rs 14.78 per share, was 156.7 per cent higher than Rs 877.48 crore, or Rs 5.76 a share, earning in the same period a year back.

"This was achieved despite the challenges of COVID pandemic due to relatively better physical performance (than industry) in the market sales and higher capacity utilisation in refineries," HPCL Chairman and Managing Director Mukesh Kumar Surana told reporters.

The net profit rose despite sales falling to Rs 45,945.48 crore in the first quarter of 2020-21, from Rs 74,595.64 crore a year back. During April-June, HPCL achieved a domestic sales volume of 7.24 million tonnes against 9.82 million tonnes in the same period previous year - a degrowth of 25.8 per cent as against 29.2 per cent degrowth for PSU oil marketing companies, he said, adding the company's refineries operated at over 100 per cent of capacity during the COVID-19 period.

The company had an inventory gain of Rs 633 crore in the April-June quarter as compared to an inventory loss of Rs 536 crore in the same period a year back.

"There was a significant fall in demand of petroleum products in the month of April 2020 due to lockdowns to contain the spread of COVID-19 pandemic in the country and the sales were down by over 48.5 per cent as compared to April 2019.

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