State-owend fuel retailer Hindustan Petroleum Corp (HPCL) on Friday reported a 31% jump in the March quarter net profit on higher refining margins and inventory gains. HPCL, which had in 2016-17 issued bonus shares in the ratio of 2:1, also announced a bonus issue of one equity share of Rs10 each for every two equity shares held.
Sales rose to Rs58,668 crore during the quarter under review compared to Rs48,145 crore in the year-ago period. While PAT for 2016-17 stood at Rs6,209 crore compared with Rs3,726 crore a year ago on a standalone basis, the fourth quarter profit was Rs1,819 crore against Rs1,388 crore a year ago.
The inventory gain for HPCL in 2016-17 was Rs2,374 crore compared with a negative Rs1,201 crore in 2015-16, and during the fourth quarter ending March 31 it stood at Rs743 crore compared with R37 crore a year ago. “Taking into account the good result, we have proposed a bonus issue of one share for every two equity shares,” said MK Surana, chairman and managing director, HPCL. In September, 2016, the company had issued bonus shares in the ratio of 2:1.
While the company’s earnings per share improved to Rs61.12 per share in 2016-17 compared with Rs36.68 the previous year, its gross sales was up from Rs1.97 lakh crore in 2015-16 to Rs2.13 lakh crore in 2016-17. The company has also proposed a final dividend of Rs1.10 per share in addition to the two interim dividends, totalling R28.90, already given earlier.
The shares of HPCL gained 11.43%, or Rs58.20, by the end of trade on Thursday to close at Rs567.45 apiece on BSE on a day when the benchmark Sensex gained 0.90% to close at 31,028.21.