HPCL Q3 Results: Reports Profit On Higher Sales, Refining Margin
HPCL's Q3 domestic sales of petroleum products was up at 10.95 MT versus 9.95 MT a year ago.
Hindustan Petroleum Corp. Ltd. is back in black in the third quarter on higher sales and refining margins.
The state-run oil refiner and marketer reported a net profit of Rs 444.26 crore in the December quarter, compared with a loss of Rs 2,475.69 crore over the same period in the previous fiscal.
HPCL Highlights Q3 FY23 (YoY):
Revenue from operations for the quarter was up 1.13% to Rs 1,09,687.9 crore on higher sales of petroleum products.
Domestic sales increased to 10.95 million tonnes, compared with 9.95 MT in the same period last fiscal. Crude throughput was 4.83 MT, compared with 4.24 MT in the year-ago period.
Average gross refining margin for the nine months of the current fiscal was $11.40 per barrel, in comparison to $4.50 per barrel over the same period in 2021–22. This was before factoring the impact of special additional excise duty, and road and infrastructure cess levied on export of select petroleum products, effective July 7, 2022, the company said in the notes to its profit and loss statement.
The company reported an operating profit, or Ebitda, of Rs 1,674.02 crore, compared to an Ebitba loss of Rs 1,514.7 crore.
Ebitda margin was 1.53%.
During this period, profitability was impacted due to the suppressed marketing margins on certain petroleum products, according to the note.
The Union government had approved a one-time grant of Rs 5,617 crore to compensate under-recoveries incurred on sale of domestic LPG during 2021–22 and the current period, which has been duly recognised in the September quarter and the nine months ended December 2022, the company said.
Other expenses for the April-December period included a Rs 1,951.6-crore forex loss, compared with a forex gain of Rs 183 crore in the corresponding period in 2021–22.