State-run oil marketing company Hindustan Petroleum Corporation (HPCL) on Friday reported a 23% increase in its net profit for the third quarter of FY18 to Rs 1,950 crore, compared with Rs 1,590 crore in the comparable period a year ago, on account of improved margins. Revenue of HPCL, which will now operate as a subsidiary of ONGC, went up to Rs 62,832 crore during the December quarter from Rs 55,471 crore a year ago. The company also saw a sharp improvement in its gross refining margin at $9.04 per barrel during the quarter under review, against $6.38 per barrel during the same quarter last year. However, inventory gain fell to Rs 1,477 crore during the third quarter of FY18, compared with Rs 1,567 crore during the year-ago period.
“Profits for the quarter are more despite lower inventory gains,” said MK Surana, CMD of HPCL. The refiner sold 5.1% more petrol, 2% more diesel, 6.7% more liquefied petroleum gas and 11.8% more lubes during the latest quarter over the year-ago period. HPCL is the top lube marketer of the country and is in the process of setting up a subsidiary in Dubai to market lube in the West Asia and east African countries. HPCL already sells lube in Myanmar.
The board of HPCL declared an interim dividend of `14.50 per share, which will lead to a total payout of Rs 2,659 crore. The company has debt of Rs 12,000 crore as on December 2017. To improve efficiency and safety, HPCL has rolled out a company-owned LPG rake for transportation of the fuel under Indian Railways’ liberalised wagon investment scheme. Surana said two more rakes will be rolled out soon.