HPCL Q4 Results: Profit More Than Triples On Higher Sales, Refining Margin

Hindustan Petroleum Corp. Ltd.’s net profit tripled year-on-year in the fourth quarter of fiscal 2023 on higher sales and gross refining margin.

The state-run refiner reported a 127.8% year-on-year increase in net profit to Rs 1,104.55 crore for the quarter ended March. However, on a full year basis, the company reported a loss of Rs 6,980.23 crore against a profit of Rs 7,294.23 crore a year ago, on account of suppressed marketing margin on a few products.

The cost of materials consumed during the year more than doubled to Rs 1,23,336 crore in FY23.

Hindustan Petroleum Q4 FY23 Highlights (YoY)

• Revenue rose 8.7% to Rs 1,14,573.31 crore in Q4 FY23.

• Operating profit or Ebitda more than quadrupled to Rs 5,129.74 crore.

• Operating margin rose 276 basis points to 4.47%.

• Crude throughput increased to 4.96 million tonnes vs 4.69 MT a year ago.

• Domestic sales rose to 10.92 million tonnes as against 10.26 MT a year ago.

• Exports fell 0.19 MT from 0.41 MT a year ago.

The average gross refining margin in FY23 was $12.09 per barrel, as against $7.19 per barrel a year ago. This was prior to factoring in the impact of special additional excise duty, and road and infrastructure cess levied on July 1 last year on export of select petroleum products, the company said in its profit and loss note.

The Government of India had approved a one-time grant of Rs 5,617 crore to compensate under-recoveries incurred on sale of domestic LPG during financial year 2022 and current period, which was duly recognised during the year.

The other expense for the full year includes a forex loss of Rs 1,808.68 crore as compared with a gain of Rs 95.79 crore a year ago.

Shares of HPCL closed 0.93% higher on Friday, while the benchmark Sensex rose 0.20%.