HPCL's Q1 Net Profit Jumps 30% To Rs 2,100 Crore

New Delhi: State-owned Hindustan Petroleum Corp Ltd (HPCL) on Monday reported a 30 per cent jump in its June quarter net profit to Rs 2,098.38 crore on rise in fuel sales and inventory gains. Net profit of Rs 2,098.38 crore in April-June quarter was 30 per cent higher than Rs 1,614.13 crore net profit in the same period a year ago, HPCL Chairman and Managing Director Mukesh K Surana told reporters here. "The increase in profit is primarily on account of growth in volumes, stable refining margin and inventory gains," he said. While its two refineries at Mumbai and Visakhapatnam processed 19 per cent crude oil at 4.48 million tonnes, domestic sales was up 5 per cent at 8.89 million tonnes. Also, the company had an inventory gain of about Rs 1,100 crore in the first quarter of current fiscal as compared to a gain of Rs 600 crore a year ago. HPCL made $6.83 on turning every barrel of crude oil into fuel as compared to $8.56 per barrel gross refining margin (GRM). Turnover however slid to Rs 51,661.04 crore in April-June from Rs 54,822.32 crore on fall in oil prices. "To bridge the product gap between refining and marketing volumes, HPCL Board has approved expansion project of its Visakh refinery at a total capital cost of Rs 20,928 crore. "The project envisages expansion of capacity from current capacity of 8.33 million tonnes per annum to 15 million tonnes," he said. The project would have bottom upgradation facility which will improve distillate yield on total refining capacity and thereby improve the GRMs, he said adding the project will be completed by 2020. Also, the company will expand its Mumbai refinery by 2 million tonnes to 9.5 million tons at the cost of Rs 4,000 crore by 2019. "With these projects, both our refineries will be complaint to produce BS-VI (Euro-VI) grade fuel," he said. During the quarter, HPCL had announced a bonus issue of 2 equity shares of Rs 10 each for each equity share of Rs 10 capitalising reserves to the extent of Rs 677.25 crore. Also, Mangalore-Hassan-Mysore LPG pipeline has been mechanically completed at a cost of Rs 838 crore and shall be shortly commissioned. During the quarter, the company got Rs 328.41 crore to cover for all of the revenue loss on sale of PDS kerosene..(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

HPCL's Q1 Net Profit Jumps 30% To Rs 2,100 Crore

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