HPCL reports Rs 701-crore profit in Q2 on lower inventory loss

NEW DELHI: Hindustan Petroleum Corp (HPCL) has reported a profit of Rs 701 crore in the second quarter as against a loss of Rs 317 crore in the year-ago period helped by a lower inventory loss.

The sales for the July-September period increased to Rs 47,750 crore from Rs 46,299 crore a year ago. “The increase in profit is due to higher domestic market sales and reduced inventory loss compared to the corresponding period of last year,” M K Surana, chairman and managing director of HPCL, said.

During the quarter, the domestic sales of petroleum products have increased to 8.02 million tonnes from 7.78 million tonnes. The gross refining margin for the quarter rose to $3.23/barrel from $2.74/barrel a year ago primarily due to increase in cracks.


The inventory loss in the second quarter shrank to Rs 359 crore from Rs 1406 crore in the year-ago period.

Shares in HPCL, valued at about Rs 45,000 crore, closed 1.6% lower in line with the broader market that ended 1.9% lower on Tuesday.

Surana said the company was engaged with the state government to set up a 9 million tonnes refinery in Rajasthan and would need some viability gap funding, including tax concessions, for the project. The Rajasthan project may cost about Rs 45,000 crore.