Hindustan Petroleum Corporation (HPCL) on Friday reported a multi-fold jump q-o-q in its consolidated net profit at ₹3,608 crore during the January-March quarter of FY23 aided by softening international crude oil prices and growing domestic consumption.

The oil marketing company’s (OMC) net profit was higher by 79 per cent from ₹2,018 crore in Q4 FY22.

Its consolidated total income rose by 9 per cent y-o-y to ₹1,15,152 crore in Q4 FY23. However, on a sequential basis, the income declined marginally by 1 per cent.

The company also announced that it will form a separate company for its green energy business.

For the entire FY23 on a consolidated basis, HPCL reported a net loss of ₹6,980 crore compared to a profit of ₹7,294 crore a year-ago.

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Other expenses for FY23 include ₹1,810.43 crore towards loss on account of foreign currency transactions and translations (gain of ₹95.28 crore included in other income in FY22).

Operational metrics

During Q4 FY23, HPCL achieved a 4 per cent y-o-y growth in sales volume (including exports) at 11.11 million tonnes (MT). It achieved its highest-ever annual sales in FY23 at 43.45 MT, an annual growth of 11 per cent.

HPCL has registered a stellar y-o-y growth, registering highest-ever sales in all the three major products with petrol sales growing by 16.2 per cent, diesel sales by 16.5 per cent and LPG sales by 4.9 per cent.

Average gross refinery margins (GRMs), gross of export duty, for Q4 FY23 were $14.01 per barrel ($12.44 per barrel in Q4 FY22). The average GRM during FY23 stood at $12.09 per barrel against $7.19 during FY22. This is before factoring-in the impact of Special Additional Excise Duty (SAED) and Road and Infrastructure Cess, effective July 1, 2022, on export of select petroleum products.

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During the current year, due to suppressed marketing margins on certain petroleum products, the profitability was impacted, it added.

HPCL refineries at Mumbai and Visakhapatnam operated at 113 per cent capacity and processed the highest-ever quarterly crude thru-put of 4.96 million tonnes (MT) during Q4 FY23 compared with 4.69 MT in Q4 FY22. Highest ever combined crude thru-put of 19.09 MT was achieved by HPCL refineries in FY23 with a growth of 36.7 per cent y-o-y.

Green arm

In a separate filing, the OMC said that its board has approved the incorporation of wholly owned subsidiary (WOS) subject to the approvals from Competent Authorities for consolidation of all green and emerging business opportunities under one umbrella.

Further, in the same board meeting, the board also considered the roadmap prepared for unlocking value in lubricant business and after detailed deliberations, accorded in-principle approval for exploring options including carving out to unlock value in the high growth, high potential lubricant business subject to approvals, it added.

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