The net profit of the oil marketing company for the quarter under review stood at Rs 2,970 crore against Rs 1,748 crore in the same period a year ago.
Despite a fall in refinery margins, state-run Hindustan Petroleum Corp (HPCL) on Monday reported a 70% year-on-year (y-o-y) increase in its net profit for the fourth quarter of FY19 on the back of inventory gains and rupee appreciation.
The net profit for the quarter under review stood at `2,970 crore against `1,748 crore in the same period a year ago.
“Profits increased mainly due to increased sales, improved logistics, efficiency, inventory gains and rupee appreciation during Q4 of financial year ending March 31, 2019,” said MK Surana, CMD, HPCL.
The oil marketing company’s inventory gain was Rs 916 crore during Q4 of FY19 compared with `157 crore a year ago.
The company also had an currency exchange gain of `248 crore during Q4 of FY19 as compared with forex loss of `84 crore a year ago.
The company’s gross refining margin (GRM) for the quarter under consideration stood at $4.51 per barrel compared with $7.07 per barrel a year ago.
For FY19, the net profit of the oil marketing company fell to `6,029 crore compared with `6,357 crore in FY18.
The GRM for the full year stood at $5.01 per barrel compared with $7.40 in previous the financial year. Surana attributed the lower refinery margins to increased crude price and exchange rate variation loss due to rupee depreciation.
However, inventory gains in FY19 was up to `1,366 crore as compared with `851 crore in FY18.
He said the company’s borrowings went up by over `7,000 crore to `27,240 crore as about `8,000 crore of fuel subsidy bill remained unpaid by the government.
During 2018-19, HPCL achieved the highest ever sales of 38.7 million tonne.
The company declared a final dividend of `9.40 per share for FY2018-19.