State-run Hindustan Petroleum Corporation (HPCL) reported a consolidated net profit of ₹6,766 crore in Q1 FY24 aided by record high sales volume and better marketing margins.

The oil marketing company (OMC) had posted a consolidated net loss of ₹8,557 crore in Q1 FY23. On a sequential basis, its net profit was higher by 88 per cent.

However, its consolidated total income was marginally lower at ₹1.20 lakh crore in Q1 FY24 compared to ₹1.22 lakh crore a year-ago. In Q4 FY23, HPCL reported an income of ₹1.15 lakh crore.

Average GRMs (Gross of export duty) for the Q1 FY24 stood at $7.44 per barrel ($16.69 per barrel during the corresponding period of previous year). This is before factoring-in the impact of Special Additional Excise Duty and Road & Infrastructure Cess levied, effective July 1, 2022, on export of select petroleum products.

Other Income for Q1 FY24 includes ₹131.48 crore towards gain on account of foreign currency transactions and translations (April-June 2022: loss of ₹945.40 crore included in other expenses).

HPCL said that the Oil Ministry on April 20, 2020 had conveyed to the OMCs that where Market Determined Price (MDP) of LPG cylinders is less than its Effective Cost to Customer (ECC), the OMCs will retain the difference in a separate buffer account for future adjustment.

“However, as on March 31, 2023, the corporation had a cumulative net negative buffer of ₹989.73 crore as the retail selling price was less than MDP. The same have been recognised as a part of Income upon its recovery during the period April-June, 2023,”” it said in its results filing with BSE.

Operational metrics

HPCL refineries processed the highest ever quarterly crude thru-put of 5.40 million tonnes (MT) during Q1 FY24 (operating at 105.9 per cent) registering a growth of 12.3 per cent Y-o-Y.

The period also saw highest ever quarterly production of diesel (2,338 thousand tonnes) and Lube Oil Base Stock (137.5 thousand tonnes) at HPCL refineries.

“On the marketing front too, HPCL achieved its highest ever quarterly total sales volume (including exports) of 11.85 MT (10.70 MT during corresponding period of previous year) representing a growth of 10.7 per cent,” the company said.

On the domestic market, HPCL registered highest ever quarterly sales volume of 11.43 MT during Q1 FY24 registering a growth of 9.4% Y-o-Y.

The OMC also registered a stellar Q-o-Q growth and highest ever quarterly sales volume in Motor Fuels with Petrol sales (2.34 MT) growing by 9.3 per cent Y-o-Y and Diesel sales (5.46 mt) growing by 10.8 per cent Y-o-Y with market share gain of 0.58 per cent and 0.57 per cent, respectively.

HPCL also recorded its highest ever Pipeline thru-put of 6.49 mt, a growth of 12.9 per cent over pipeline thru-put of 5.75 MT during corresponding period of previous year, surpassing the previous high of 6.13 mt achieved during Q4 FY23.

To strengthen refining and marketing infrastructure, HPCL has invested ₹3,399 crore during April-June 2023 (including equity investment in its JVCs and subsidiaries).

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