The Hindu Business Line : HPCL's Q3 net dips 70 pc

HINDUSTAN Petroleum Corporation Ltd (HPCL) registered a sharp decline of about 70 per cent in its third quarter net profit at Rs 235.92 crore as compared to Rs 775.71 crore in the year-ago period.

The major factor responsible for the dip in profit was the fact that HPCL as well as the other PSU oil companies did not get the advantage of an upward revision in prices of petroleum products for the first two months of the quarter, even while international prices were tracing an upward curve, company official say.

Further, the company has implemented a VRS resulting in a payout of Rs 42.14 crore, which is being amortised equally for five fiscals. The proportionate charge for the last quarter amounted to Rs 5.38 crore. The dip in profit was despite the fact that the company's crude throughput increased from 3.30 million tones in the third quarter of last fiscal to Rs 3.82 crore in the December 2004 quarter and market sales (including exports) from 5.16 million tonnes to 5.22 million tonnes.

The companies net sales and income from operations also increased from Rs 12,939 crore in the third quarter of last fiscal to Rs 16,227 crore in the corresponding quarter of the current fiscal.

However, on the expenditure front, the company ran a total bill of Rs 15,762 crore during the quarter (Rs 11,620 crore). This was mainly because of an increase in cost of raw material consumption to Rs 6,022 crore during the quarter (Rs 3,487 crore).

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